Investment Analysts And Fund Managers Visit Union Platinum Mine 7 - PowerPoint PPT Presentation

Investment Analysts And Fund Managers Visit Union Platinum Mine 7 May 2004

Agenda • Location • Safety and Environment • Geology • Resources and Reserves • Mining Method • Production • Metallurgy • Operating Cost • Capital Program • Human Resources • Key Business Issues

Location

UNION LOCATION Legend UNKI PROJECT Zimbabwe Bushveld Complex Botswana Mozambique Namibia Anglo Platinum Republic % U POLOKWANE (PIETERSBURG) POTGIETERSRUST of Anglo Platinum - Joint Venture PLATINUMS LIMITED South Africa Polokwane Smelter ð Impala Platinum Mines Lonmin PLC LEBOWA PLATINUM MINES % U MOKOPANE (POTGIETERSRUS) Northam Platinum Limited Southern Era PASCHASKRAAL JV Merensky LIMPOPO MODIKWA UG2 TWICKENHAM Platreef % U NORTHAM BURGERSFORT AMANDELBULT BELA BELA (WARMBATHS) U % UNION DER BROCHEN LYDENBURG % U BAFOKENG/RASIMONE BOOYSENDAL JV STYLDRIFT JV NORTH-WEST RUSTENBURG GAUTENG % U MPUMALANGA PRETORIA U % PANDORA JV RUSTENBURG ± WITBANK % U 0 10 20 JOHANNESBURG U % Kilometres

Plan of RPM Union

SHE Strategy

Union Section’s Vision We at Union Section Support the Vision & Values of Anglo Platinum by: ! Creating a culture of safety, participation, quality, excellence and being performance driven. • By being focused on:- • Safe and sound mining practices • Employee development • Employee relations • Cost efficiency • Care for the environment • Strategic management which will ensure ore body optimization, sustainable delivery and growth

Union Section’s Ethos • Care for our people • Environmental care • Consistent performance • Continuous improvement • Ensure sustainability

RECENT SAFETY MILESTONES ON THE ROAD TO EXCELLENCE • 1.4 Million underground fatality free shifts. • Surface Section • 6,5 million fatality free shifts • fatality free for more than 9 years. • Achieved ISO 14001 accreditation.

Union Section LTIFR– 2000 to 2003 5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 2000 2001 2002 2003 ACTUAL 4.42 3.17 1.31 1.25

Safety Strategy Greater participation by all Behaviour Based Safety Restructuring of SHE resource Safer methods and equipment Permanent Engineering solutions Contractor Management Fall of Ground prevention strategy

Geology

UNION LOCATION ON LANDSAT IMAGE ´ 10 Kilometres AMANDELBULT ROODERAND UNION BAFOKENG/RASIMONE RUSTENBURG PANDORA JV ! ( RUSTENBURG

Union Section Merensky - 20 Year Plan 2004 - 08 2009 - 13 N 2014 - 18 2019 - 23

Union Section UG2 - 20 Year Plan 2004 - 08 2009 - 13 N 2014 - 18 2019 - 23

ALL DRILLING SPACING LEGEND UNDERGROUND DRILLHOLES SURFACE DRILLHOLES

UNION ECONOMIC STRATIGRAPGY m UPDIP DOWNDIP 0 MAIN REEF MERENSKY REEF NORITE Mottled Anorthosite CONTACT REEF Pseudo Marker LENS REEF 18 POTHOLE REEF SINGLE CHROME POTHOLE REEF TARENTAAL PYROXENITE PYROXENITE SHALLOW SLUMP REEF 36 UG2 SLUMP SLUMP REEF UG2 CHROMITITE LAYER PYROXENITE XENOLITH 54 UG1 CHROMITITE LAYER

MINERALISATION " Merensky Reef Mining predominantly Regional Pothole Merensky Reef. Consistent width and grade Dip angle 18 degrees " UG2 Reef Consistent width and grade Leaders mined with main seam The UG2 structure on the flanks is more complex than the central area. Minor slumping Dip angle 18 degrees

MAIN REEF CHARACTERISTICS HW PYROXENITE MAIN REEF AVE~220CM PEGMATOID FOOTWALL ANORTHOSITE 0 5 10 15 20 25

POTHOLE REEF CHARACTERISTICS PYROXENITE o o o o o o PEGMATOIDAL O /\ FELSPATHIC 20CM /\ O PYROXENITE O /\ /\ O O /\ /\ O O /\ FELSPATHIC /\ O HARTZBURGITE O /\ /\ O O /\ /\ O O /\ 0 10 20 30 40 50 60 g/t

UG2 CHARACTERISTICS Feldspathic o /\ Harzburgite /\ O Leader seams Chromitite Pyroxenite Chromitite Pyroxenite 155CM Chromitite Main Seam 80CM O O Pegmatoidal O Felspathic O O Pyroxenite O O O 0 5 10 15 g/t

MAJOR STRUCTURAL FEATURES DYKES FAULTS 25M 200M 30M 500M 150M

Resources and Reserves

RESOURCES Ore Body Category Tonnage (Mt) 4E In situ Grade 4E Ounces 27.9 8.04 Merensky Reef Inferred Resources Indicated Resources 3.8 9.00 Total Resources 31.7 8.16 Ore Body Category Tonnage (Mt) 4E In situ Grade 4E Ounces 153.6 4.64 UG2 Reef Inferred Resources 5.8 4.38 Indicated Resources Total Resources 159.4 4.63 Ore Body Category Tonnage (Mt) 4E In situ Grade 4E Ounces 78.4 1.16 Tailings Indicated Resources

Reserves Ore Body Category Tonnage (Mt) 4E Head Grade 4E Ounces 4.9 4. 6.75 6. 75 Merensky Reef Proved Reserves Probable Reserves 15 15.1 .1 6.64 6. 64 Total Reserves 20.0 20 .0 6. 6.67 67 Ore Body Category Tonnage (Mt) 4E Head Grade 4E Ounces 13.1 13 .1 4.01 4. 01 UG2 Reef Proved Reserves Probable Reserves 34 34.1 .1 3.90 3. 90 Total Reserves 47.1 47 .1 3.93 3. 93

MONTHS AVAILABLE ORE RESERVES 25 20 15 MONTHS 10 5 0 1999 2000 2001 2002 2003 YEAR

Mining Method

Mine Design Mining Methods Mining Methods Mechanised F/W Access with conventional Mining Decline Low Profile Section Breast mining Mined Mechanised Low Profile with Belts Mined Spud & Richard Conventional Shaft UG2 Breast Mined Scattered Merensky Merensky Breast special precautions

Tamrock Low Profile Roof Bolter

Sulzer Rig

4 South Portal

4 B Portal 4 B Portal

Production

Union Section Equivalent Refined Pt Ounces 330000 320000 310000 300000 290000 Ounces 280000 270000 260000 250000 1999 2000 2001 2002 2003 307300 291,100 269,500 276,700 318,200 Ounces

History Tons Milled 6500000 6000000 5500000 5000000 4500000 Tons Milled 4000000 3500000 3000000 2500000 2000000 1999 2000 2001 2002 2003 Tons Milled 3749000 4159000 4466000 4562000 5882000

Metallurgy

Metallurgical processing Prill Splits UG2 Mer 4E % of 4E Total % 100.00% 100.00% 4E Platinum (% of 4E split) 60.74% 61.73% 4E Palladium (% of 4E split) 27.52% 28.96% 4E Rhodium (% of 4E split) 11.18% 7.34% 4E Gold (% of 4E split) 0.56% 1.96% Pt Iridium (% of Pt split) 6.37% 3.89% Pt Osmium (% of Pt split) - - Pt Ruthenium (% of Pt split) 24.24% 17.20%

Ivan Plant Tailings Retreatment

Operating Costs

RPM Union Section Cash on-mine cost per equivalent refined ounces 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 2000 2001 2002 2003 2786 3489 3876 4232 Cash on-mine cost per equivalent refined ounce

RPM Union Section Cash on-mine cost per ton milled 250 225 200 175 150 2000 2001 2002 2003 195 211 235 229 Cash on-mine cost per ton milled

Pie Graph - Cost Comparison 2003 Amortisation Sundries 8% 6% Utilities Labour 6% 40% Stores 31% Contractors 9% Labour Contractors Stores Utilities Sundries Amortisation

COST INITIATIVES • Concentration of Production • Lower Cost Decline Production • On-mine Cost Reduction

STRATEGY STRATEGY Move from deep mining to shallow mining. • • Move from conventional mining to safer, mechanised mining where appropriate and cost effective. • Convert current high profile mechanised to low profile mechanised. • Increase UG2 M2 production at Spud shaft and Declines. • Extra UG2 to be milled at Ivan plant. • Mining, Metallurgical, People optimisation.

Capital Programmes

Capital Expenditure 2000 to 2003 R'000 700000 600000 500000 400000 300000 200000 100000 0 2000 2001 2002 2003

Capital Programs Main items 2002 and 2003 • 4B and 4South • Mortimer plant • Airfields tailings dam • Infrastructure

4 South Portal

Fully Automatic Low Profile Roof Bolter Fully Automatic Low Profile Roof Bolter

Tamrock EJC Low Profile Loader

Tip-point chain feeder

Mortimer UG2 Expansion to 230000 tpm

Slag Flotation Plant

Airfields Tailings Dam & Tailings Thickener

Larox Filter

Surface Railway

Northam Road Upgrades

Human Resources

Human Resources strategy Union HR Summary of Strategic Thrusts • - Business Planning - Performance Management - Employee Communications - Work Design - Human Resources Development - Recruitment Selection & Assessments - Employment Equity - Employee Relations - Socio-Economic Development