ANGLO AMERICAN PLATINUM CORPORATION LIMITED RUSTENBURG ANALYST AND - - PDF document

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ANGLO AMERICAN PLATINUM CORPORATION LIMITED RUSTENBURG ANALYST AND - - PDF document

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ANGLO AMERICAN PLATINUM CORPORATION LIMITED RUSTENBURG ANALYST AND FUND MANAGER VISIT 18 November 2004 Agenda Location Safety Strategy Geology Resources and reserves Shaft and project status Production Working

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SLIDE 1

ANGLO AMERICAN PLATINUM CORPORATION LIMITED RUSTENBURG

ANALYST AND FUND MANAGER VISIT 18 November 2004

Agenda

  • Location
  • Safety
  • Strategy
  • Geology
  • Resources and reserves
  • Shaft and project status
  • Production
  • Working cost and capital expenditure
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SLIDE 2

Location

LIMPOPO PROVINCE

LYDENBURG MAANDAGSHOEK FARM ZEERUST RUSTENBURG

NORTH WEST PROVINCE

MOKOPANE WITBANK WARMBATHS PRETORIA BARPLATS KENNEDY VALE

MPUMALANGA GAUTENG BOTSWANA

N

  • RPM. RUSTENBURG

NORTHAM

  • RPM. UNION

PP RUST LEBOWA

  • RPM. AMANDELBULT

IMPALA WESTERN AND EASTERN PLATS BARPLATS CROCODILE RIVER BAFOKENG

Bushveld Complex Anglo Platinum Mines Implats Mines Lonmin Mines Northam Mine

2 5 O 25 O

Republic

  • f

South Africa

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SLIDE 3

Rustenburg Mine

P/KRAAL P/KRAAL FRANK FRANK WATERVAL WATERVAL TURFFONTEIN TURFFONTEIN BRAKSPRUIT BRAKSPRUIT BLESKOP BLESKOP PSA PSA TOWNLANDS & BOSCHFONTEIN TOWNLANDS & BOSCHFONTEIN

Shafts Concentrators Smelter Refineries Legend

Frank Concentrator Waterval Smelter Wval Concentrators RBMR PMR WLTR Klip Conc

SAFETY

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SLIDE 4

Rustenburg Section FIFR – 2000 to 2003

0.00 0.01 0.02 0.03 0.04 0.05 0.06 Year Rate FIFR 0.05 0.04 0.04 0.03 2000 2001 2002 2003

Rustenburg Section LTIFR – 2000 to 2003

0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 Year Rate LTIFR 3.03 1.32 1.36 0.83 2000 2001 2002 2003

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SLIDE 5

SHE Strategy

  • Total integration of Safety, Health (Occupational

Hygiene and Medicine) in terms of – Systems – People – Effort

  • Continue with the OTTO campaign
  • Behaviour based safety campaign
  • Total integrated Risk approach in terms of

– Risk profile management – Enterprise wide risk management

Mining Strategy

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SLIDE 6

Rustenburg Section Rustenburg Section

Equivalent Refined Pt Ounces

  • 100

200 300 400 500 600 700 800 900 Year Pt oz pa (000) UG2 52 57 138 221 127 Merensky 573 632 635 605 289 2000 2001 2002 2003 H2004

  • Rustenburg is One Mine
  • Merensky is primary ore body
  • UG2 is secondary ore body

Rustenburg Strategy

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SLIDE 7

Mining Strategy

A member of the Anglo American plc group

  • Maximise value from ore-body
  • NPV, ROCE, cash margin and earnings growth
  • Short-term -

Maximise Merensky

  • Maximise value adding UG2
  • Long-term
  • Access deeper Merensky
  • Balanced transition to UG2
  • Appropriate mining method per area and ore type
  • Maintain flexibility to adjust to macroeconomics

Rustenburg – Merensky 5 & 20 yr Plan

Merensky 115 mil tons UG2 384 mil tons Ore Reserves _

Legend 5 Year 20 Year

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SLIDE 8

Rustenburg – UG2 5 & 20 yr Plan

Legend 5 Year 20 Year

Management Structure

Organization structure supports strategy

  • Fewer management levels
  • Split mining and processing
  • One Mine Manager for Lower Mine -

predominantly Merensky

  • One Mine Manager for Upper Mine -

predominantly UG2

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SLIDE 9

Geology

  • Increased knowledge of the ore body from an

extensive exploration program

  • Merensky and UG2 geozones have been clearly

delineated

Ore Body Knowledge

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SLIDE 10

LEGEND. Areas where the Merensky Reef is affected by Pegmatite Areas where the Merensky Reef is affected by rolling Reef and is highly geologically disturbed Areas, with thick Merensky Reef, varying from 0,8 to 2,0m in thickness. Areas where normal Merensky Reef is being mined.

Townlands BA Paardekraal BA Frank BA Turffontein BA Potholes on the farm Hoedspruit East BA

The Merensky Ore Body

DRILLING CURRENTLY IN PROGRESS PLANNED FUTURE DRILLING

Exploration Program 2004

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SLIDE 11

Merensky Depth Results – Total Area

Eastern Area Western Area

Rustenburg Aeromag

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SLIDE 12
  • 3D Seismics provided valuable orebody

information. – F1 fault provides natural boundary between intermediate and deeper area – Large potholes identified – Graben feature identified

  • Extensive exploration drilling is in progress to

validate the seismic information

  • Aeromag interpretation completed and has been

integrated into structure model

Exploration Program Resources – 31 December 2003 Resources – 31 December 2003

Ore Body Category Tonnage (Mt) 4E Grade (g/t) Merensky Measured

  • Indicated
  • Inferred

111.6 6.28 Total 111.6 6.28 Ore Body Category Tonnage (Mt) 4E Grade (g/t) UG2 Measured 13.1 5.92 Indicated 7.2 5.73 Inferred 285.1 4.69 Total 305.4 4.76 Ore Body Category Tonnage (Mt) 4E Grade (g/t) Tailings Indicated 140.6 1.03

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SLIDE 13

Reserves – 31 December 2003 Reserves – 31 December 2003

Ore Body Category Tonnage (Mt) 4E Grade (g/t) Merensky Proved 19.3 5.56 Probable 14.3 5.55 Total 33.6 5.56 Ore Body Category Tonnage (Mt) 4E Grade (g/t) UG2 Proved 26.9 4.22 Probable 115.7 4.10 Total 142.6 4.12

Prill Splits

Prill Splits

Merensky UG2 4E Platinum 63.00% 53.67% 4E Palladium 28.05% 32.83% 4E Rhodium 4.10% 9.28% 4E Gold 4.91% 0.74%

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SLIDE 14

Shaft and Project Status

Townlands and Boschfontein

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SLIDE 15

Townlands and Boschfontein

Merensky

Townlands and Boschfontein

UG2

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SLIDE 16

Townlands and Boschfontein

  • A successful business model – balanced

Merensky and UG2 mining

  • Applied lessons learnt from UG2
  • Smooth change over from Merensky to UG2

in medium to long term

  • Life of Shaft Merensky 10 years
  • Life of Shaft UG2 42 years

Paardekraal Shaft

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SLIDE 17

Paardekraal Shaft

Merensky

Paardekraal Shaft

UG2

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SLIDE 18

Paardekraal Shaft

  • Paardekraal extension to 28 level under way
  • Planning in place for Paardekraal 2 Shaft
  • Below 28 level Paardekraal strike extends to

Townlands western boundary

  • Paardekraal to increase Merensky and to

supplement with UG2 to fill shaft at 200 ktpm

Paardekraal 2 Planned New Shaft Phase 1 Phase 2 Merensky Reef Horizon

50 Level 41 Level 32 Level 40 Level

  • Install mid-shaft loading
  • Connect to vent #

Connect Clusters through to PK 28 Level

View: West to East

Commission shaft

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SLIDE 19

Frank Shaft Frank Shaft

Merensky

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SLIDE 20

Frank Shaft

UG2

Frank Shaft

  • Extend Merensky mining to 37 level
  • Merensky mining layout changed from Down

dip to Breast

  • Merensky Replacement Shaft – pre-feasibility

complete

  • UG2 mining layout changed from Bord and

Pillar to Hybrid

  • Reduced UG2 production to 40 ktpm because of

increase in Merensky production

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SLIDE 21

Planned New Frank Vent Shaft Phase 1 Phase 2 Merensky Reef Horizon

50 Level 42 Level 32 Level 41 Level Connect to main #

View: West to East

Shaft holing 37 Level 36 Level

Turffontein Shaft

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SLIDE 22

Turffontein Shaft

Merensky

Turffontein Shaft

  • Has highest Merensky in situ grade at

Rustenburg

  • Planned reduction in half levels to optimise

production and to reduce cost

  • Turffontein 2 Shaft planned as a medium to

long term project

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SLIDE 23

East Mine Option 1

Shaft system situated in block G10

TURFFONTEIN INCLINE 36 LEVEL 37 LEVEL 38 LEVEL 39 LEVEL 40LEVEL 44LEVEL 45LEVEL 46LEVEL 47LEVEL 48LEVEL 49LEVEL 50LEVEL

MAIN SHAFT VENT SHAFT

PHASES 1&2 PHASE 3

Planned Turffontein 2 Shaft Brakspruit Shaft

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SLIDE 24

Brakspruit Shaft Merensky Brakspruit Shaft UG2

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SLIDE 25

Brakspruit Shaft

  • Mine more Merensky in short term
  • Life of Merensky is less than 2 years
  • Merensky from pothole area
  • Merensky and UG2 is mixed, no separate

storage facility

  • UG2 reserves for medium to long term
  • Push Merensky to gain time to develop

concentrated UG2

Bleskop Shaft

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SLIDE 26

Bleskop Shaft

UG2

Bleskop Shaft

  • Change from mechanized bord and pillar to

hybrid mining layout

  • Conversion to new layout almost complete
  • Change over to conventional intended to

reduce unit cost and improve head grade

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SLIDE 27

Waterval Mine Waterval Mine

UG2

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SLIDE 28

Waterval Mine

  • Need to optimize Decline spacing
  • Board and Pillar mining layout with a T-cut

implemented

  • XLP project in progress showing positive results

to further reduce dilution

Rustenburg Section

Rustenburg Average Tons per Month Milled per Business Area

  • 200

400 600 800 1,000 1,200 2002 2003 2004 Year Average Tons per Month Milled (000) Brakspruit Bleskop Turffontein Paardekraal Townlands Frank Waterval

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SLIDE 29

Project update

Comments:

  • Dilution of head grade due to safety standards
  • Ore sorting plant being commissioned

Capex (Rm): Announced (2003 money) 1,500 Spent to end 2003 (actual) 1,325 Remaining (2004 money) 25 Forecast production profile: Tons milled per month 400,000 Pt oz per annum 360,000 Pd oz per annum 210,000 Steady state in 2007

Rustenburg UG2 Phase 1

FEBRUARY 2004

Comments:

  • Need for second concentrator being investigated
  • Included in overall review of Rustenburg production
  • Boschfontein East development slowed down

Capex (Rm):

Announced (2003 money)

3 700

Spent to end 2003 (actual)

775

Remaining (2004 money)

3 150 Forecast production profile:

Tons milled per month

400 000

Pt oz per annum

306 000

Pd oz per annum

167 000 Steady state in 2009

Rustenburg UG2 Phase 2

FEBRUARY 2004

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SLIDE 30
  • UG2 Phase 1
  • Announced in September 2000
  • Brakspruit, Bleskop, Paardekraal

200 ktpm

  • Waterval mine

200 ktpm

  • 395 000 Pt oz pa revised to 360 000 Pt oz pa
  • Currently UG2

Brakspruit 36 ktpm

  • Bleskop

78 ktpm

  • Paardekraal

83 ktpm

  • Waterval

210 ktpm

  • Currently UG2 300 000 Pt oz pa

Project Background and Status

UG2 Phase 2

  • Announced in December 2002
  • Frank and Townlands

150 ktpm

  • Boschfontein East & West

245 ktpm

  • 306 000 Pt oz pa by 2007 (Under review)
  • Currently UG2

Frank 38 ktpm

  • Townlands/Boschfontein

68 ktpm

  • Currently UG2 100 000 Pt oz pa

Project Background and Status

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SLIDE 31

Major Projects

  • Current strategy alters nature of UG2 phase 1

and Phase 2 projects as announced

  • Capital focus on concentrating flexibility and

infrastructure utilisation

  • Some UG2 volume growth
  • Decisions on capex and volume composition

after 2006 not final

PRODUCTION

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SLIDE 32

Rustenburg Section Rustenburg Section

Tons Milled

  • 2,000

4,000 6,000 8,000 10,000 12,000 14,000 Year Tons Milled pa (000) UG2 1,065 1,255 3,836 5,453 2,703 Merensky 6,150 6,478 6,981 6,774 3,358 2000 2001 2002 2003 H2004

  • Sustained production level planned at 1,1m tpm

Rustenburg Section Rustenburg Section

Head Grade

0.00 1.00 2.00 3.00 4.00 5.00 6.00 Year Head Grade (g/t) Rustenburg Section 5.32 5.38 5.31 5.17 5.06 UG2 Project 3.24 3.38 3.69 2000 2001 2002 2003 H2004

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SLIDE 33

Rustenburg Section Rustenburg Section

Equivalent Refined Pt Ounces

  • 100

200 300 400 500 600 700 800 900 Year Pt oz pa (000) UG2 52 57 138 221 127 Merensky 573 632 635 605 289 2000 2001 2002 2003 H2004

  • Sustained production level planned at 900-1 000 koz pa from 2006

Operating Costs

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SLIDE 34

Rustenburg Section Rustenburg Section

Cash On-mine Cost per Ton Milled

50 100 150 200 250 300 350 400 Year R/t Milled Steady State 264 286 296 316 348 UG2 Project 221 252 276 Rustenburg 270 286 312 2000 2001 2002 2003 H2004

Rustenburg Section Rustenburg Section

Cash On-mine Cost per Equivalent Refined Ounce

1,000 2,000 3,000 4,000 5,000 6,000 7,000 Year R/oz equiv. Refined Pt oz Steady State 3,055 3,206 3,400 3,604 3,863 UG2 Project 5,205 5,647 5831 Rustenburg 3,776 4,234 4,549 2000 2001 2002 2003 H2004

  • Planned overall cost profile for Rustenburg flat in real terms
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SLIDE 35

Cash On Mine Cost Rustenburg Section

Contractors 7% Labour 45% Stores 25% Utilities 6% Sundries 10% Amortisation 7%

Contractors Labour Stores Utilities Sundries Amortisation

Cash On Mine Cost 2003

Rustenburg Section

RPM Total Capex Profile

500 1000 1500 2000 2500 2000 2001 2002 2003 2004 2005 2006 Year Capex Rm

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SLIDE 36

Capex

  • Ongoing capex

R800m - R1bn pa

  • 2004 - 2006

– Concentrating upgrade R1050m – Capacity – Cost efficiency – Recovery – Flexibility – Boschfontein UG2 R600m – Turffontein Merensky R400m

Note: Concentrating upgrade removes need for additional 400 ktpm UG2 concentrator.

Key Business Issues

  • Improved Safety performance
  • Unit cost reduction
  • Maximize value of UG2 & Merensky

production

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SLIDE 37

Questions?