Welcomes Anglo American plc SAFE, SIMPLE AND EFFECTIVE! Venetia - - PowerPoint PPT Presentation

SLIDE 1

SAFE, SIMPLE AND EFFECTIVE!

De Beers Venetia Mine

Welcomes Anglo American plc

SLIDE 2

SAFE, SIMPLE AND EFFECTIVE!

Venetia Mine Vision

Our Venetia an efficient and cost-effective diamond operation responsibly securing our prosperity

SAFE, SIMPLE AND EFFECTIVE!

SLIDE 3

SAFE, SIMPLE AND EFFECTIVE!

Processes

A culture of continuous business improvement and standardization entrenched in all processes within the workplace to ensure the short term viability and long term sustainability

DELIVERY

Reputation

High levels of confidence instilled with our shareholders and key stakeholders (employees and external) by managing the mine within acceptable and understandable levels of risk.

QUALITY

Financial

Sufficient cash generated to serve the FoC commitments and fund the growth and future expansion needs in such a way as not to compromise any of the covenants.

COST

People

Competent, innovative and passionate people and teams committed to continuous improvement

MORALE

Our ‘Definition of Victory’

ZERO HARM to People, Planet & Profit Always

SAFETY

SLIDE 4

SAFE, SIMPLE AND EFFECTIVE!

SLIDE 5

SAFE, SIMPLE AND EFFECTIVE!

Resources

SLIDE 6

SAFE, SIMPLE AND EFFECTIVE!

Kimberlite Cluster

K03 K02 K11 K08 K05 K06 K12 K04 K07 K16 K01 K18 K10

SLIDE 7

SAFE, SIMPLE AND EFFECTIVE!

Kimberlite Cluster

K03 K02 K11 K08 K05 K06 K12 K04 K07 K16 K01 K18 K10

SLIDE 8

SAFE, SIMPLE AND EFFECTIVE!

Resource Models

North K01 and K02 Modelled to 1044m below surface K03 modelled to 600m below surface Satellites modelled to various depth

K01 K02 K03 K04

SLIDE 9

SAFE, SIMPLE AND EFFECTIVE!

Post SBP Resource Classification

Low Indicated High Inferred Medium Inferred Very Low Inferred 2009 SBP Open Pit Mining Limit Current Mining Surface

Surface to B63 Surface to B13 B64 to B87 Surface to B14 B15 to B27 B28 to B58 B59 to B72 B36 to 49 Surface to B35

K03 K02 K01 K04

SLIDE 10

SAFE, SIMPLE AND EFFECTIVE!

Resources

1000000 2000000 3000000 4000000 5000000 6000000 7000000 8000000 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 77 79 81 83 85

Tones

1000000 2000000 3000000 4000000 5000000 6000000 7000000

Carats

K01 Indicated Tones K01 Inferred Tones K2 Indicated Tones K2 Inferred Tons K3 Inferred Total Carats

Open Pit to end

• f Cut 3

Open Pit Cut 4 Underground Phase 1 Underground Phase 2

Tons 125.9 Carats 168.4 Tons 57.9 Carats 74.8 Tons 83.5 Carats 97.8 Tons 41.9 Carats 36.6

SLIDE 11

SAFE, SIMPLE AND EFFECTIVE!

Current Production

SLIDE 12

SAFE, SIMPLE AND EFFECTIVE!

Total Waste Mined

Budget = 22.68mT

1653 1339 1872 1656

200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400

Jan

• 10

F eb

• 10

Mar-10 Ap r-10 May-10 Ju n

• 10

Ju l-10 Au g

• 10

S ep

• 10

O ct-10 N

• v-10

D ec-10

Tons in Thousands

YTD (Mar) 7% up vs budget

2009 Budget = 1.5Mt YTD Actual = 4.86mT YTD Budget = 4.54mT

SLIDE 13

SAFE, SIMPLE AND EFFECTIVE!

Kimberlite Mined

Budget = 3.63mT

64 461 390 209

100 200 300 400 500

Jan

• 10

F eb

• 10

Mar-10 Ap r-10 May-10 Ju n

• 10

Ju l-10 Au g

• 10

S ep

• 10

O ct-10 N

• v-10

D ec-10

Tons in Thousands

YTD (Mar) 1% up vs budget

2009 Budget = 1.5Mt YTD Actual = 0.91mT YTD Budget = 0.90mT

SLIDE 14

SAFE, SIMPLE AND EFFECTIVE!

2009 Budget = 1.5Mt YTD Actual = 5.78mT

Total Tons Mined

Budget = 26.30mT

YTD Budget = 5.44mT

1,717 1,780 2,262 1,865

600 1,200 1,800 2,400 3,000

Jan

• 10

F eb

• 10

Mar-10 Ap r-10 May-10 Ju n

• 10

Ju l-10 Au g

• 10

S ep

• 10

O ct-10 N

• v-10

D ec-10

Tons in Thousands

YTD (Mar) 6% up vs budget

SLIDE 15

SAFE, SIMPLE AND EFFECTIVE!

215 318 390 312

90 180 270 360 450

Jan

• 10

F eb

• 10

Mar-10 Ap r-10 May-10 Ju n

• 10

Ju l-10 Au g

• 10

S ep

• 10

O ct-10 N

• v-10

D ec-10

Tons in Thousands

Kimberlite Treated

Budget = 4.00mT

YTD (Mar) 5% down vs budget

2009 Budget = 1.5Mt YTD Actual = 0.92mT YTD Budget = 0.97mT

SLIDE 16

SAFE, SIMPLE AND EFFECTIVE!

178 362 426 355

100 200 300 400 500

Jan

• 10

F eb

• 10

Mar-10 Ap r-10 May-10 Ju n

• 10

Ju l-10 Au g

• 10

S ep

• 10

O ct-10 N

• v-10

D ec-10

Carats in Thousands

Carats Recovered

Budget = 3.97mCts

YTD (Mar) 0.1% up vs budget

2009 Budget = 1.5Mt YTD Actual = 0.97mCts YTD Budget = 0.96mCts

SLIDE 17

SAFE, SIMPLE AND EFFECTIVE!

Looking Forward

Enhancement Opportunities

SLIDE 18

SAFE, SIMPLE AND EFFECTIVE!

18

Business Sustainability Programme Road Map

Select optimal depletion strategy

13/4

Detailed scheduling Detailed pit (incl. K03), stockpiles and the Underground schedules

21/4

Match schedule to Group requirements Finalise SBP & LOM Output Group Requirements Cash flow, EBITDA Dividends, Debt Repayments

5/5

Draft Report (off mine) Draft Report (on mine)

17/5 31/5 9/4

Mine Planning – Pit Optimisation Pit Optimisation studies with reduced ramp widths & increased slope angles (high level Cut 3+ & Cut 4+ schedules) Integrate high level schedules with K03 2009 Base Line SBP updated with current indices Cut 4v27 Preliminary SBP models (Cut 3+, Cut 4+, Cut 4v27, U/G)

30/3 31/3 15/3

NOTE: Ore Extraction opportunities divided into:

• Bankable
• High Potential
• Further Opportunities

Mining Equipment efficiencies (shovels & trucks) Mining Bench Height implementation study Operational delay review Truck Bowl Optimisation Equipment Lifecycle review

15/3 20/3 30/3 Ongoing

Underground expansion Iterative verification of the interface with the Underground team

21/4 19/3

Rehabilitation and Closure Liability

TBC

NOTE: Ore Processing opportunities divided into:

• Bankable
• High Potential
• Further Opportunities

All need earliest start dates Plant Recovery factor study (RATU Implementation) Ore Processing Satellite Stockpile treatment Red Area Tailings treatment K03 treatment

30/3 7/4

Mix 03 treatment Final Report (off mine)

30/6

SLIDE 19

SAFE, SIMPLE AND EFFECTIVE!

Q2 2009 + Q1 2010 + Q4 2010 to Q1 2013 Q1 2011 + 2013 + Ongoing Review

Satellite Stockpile Red Area Tailings Dump K03 Mix 03 RATU Implementation

Improve plant efficiency Upgrade obsolete technology MODRUP replacement Increase in throughput rates of satellite and other magnetic material Bulk reduction in magnetic material Wet Magrolls

Risks

• Mine test unit versus production

unit

Improve plant efficiency Upgrade obsolete technology MODRUP replacement Increase in throughput rates of satellite and other magnetic material Bulk reduction in magnetic material Wet Magrolls Increase in throughput rates of satellite and other magnetic material Bulk reduction in magnetic material Wet Magrolls

Risks

• Mine test unit versus production

unit

1,536,000 Total carats 7,534,481 Total tons (LOM) 20 cpht Grade (@ 2DS) Consist out

• f K4, K5,

K6 Composition 1,536,000 Total carats 7,534,481 Total tons (LOM) 20 cpht Grade (@ 2DS) Consist out

• f K4, K5,

K6 Composition Risks

• High yields, exceed recovery capacity
• Grade variation
• EMV fleet availability
• Accelerate EMV capital spend

2,433,000 Total carats 114,064 Total tons 2133 cpht Grade (@ 2DS)

• 3mm + 1

mm recovery tailings Composition Risks

• Grade variation
• Accelerated timelines
• Red Area Infrastructure/Services Supply
• Contaminants (grease, steel etc.)
• Long lead items

2,433,000 Total carats 114,064 Total tons 2133 cpht Grade (@ 2DS)

• 3mm + 1

mm recovery tailings Composition Risks

• Grade variation
• Accelerated timelines
• Red Area Infrastructure/Services Supply
• Contaminants (grease, steel etc.)
• Long lead items

3,500,000 Total carats 12,500,000 Total tons 28 cpht Reserve grade (@2DS) MVKBR, DVK, MVK Composition 3,500,000 Total carats 12,500,000 Total tons 28 cpht Reserve grade (@2DS) MVKBR, DVK, MVK Composition 2,746,000 Total carats 8,373,000 Total tons 33 cpht Grade (@ 2DS) 63% Waste, 27% kimberlite Composition 2,746,000 Total carats 8,373,000 Total tons 33 cpht Grade (@ 2DS) 63% Waste, 27% kimberlite Composition Risks

• High yields, exceed recovery capacity
• Excessively hard material
• Grade variation

Ore Processing Business Sustainability Program Implementation Plan

SLIDE 20

SAFE, SIMPLE AND EFFECTIVE!

Q1 2008 + Q2 2009 + Q4 2009 + Q1 2010 + Q4 2010 + Q4 2010 to Q4 2013 2011 +

2009 Year Performance 2010 onwards BSP 42.5% 42.5% Pit Layout Average Loading Rates per period - RH200 1274 880 803 1214 1247 949 817 1503 1336 1297 1510 1940 2170 2236 500 1000 1500 2000 2500 2 9 1 2 9 2 2 9 3 2 9 4 2 9 5 2 9 6 2 9 7 2 9 8 2 9 9 2 9 1 2 9 1 1 2 9 1 2 2 1 1 2 1 2 Production Period Average Tons Average Loading Rates per period - RH340 1391 1163 963 1061 1010 1077 1314 1480 1570 1517 1571 2365 2323.4 2476 500 1000 1500 2000 2500 3000 2 9 1 2 9 2 2 9 3 2 9 4 2 9 5 2 9 6 2 9 7 2 9 8 2 9 9 2 9 1 2 9 1 1 2 9 1 2 2 1 1 2 1 2 Production Period Average Tons ’10 Q1 = 56% ’09 YR = 39% Budget Rate: RH340 = 1800tph, RH200 = 1400tph New Rate: RH340 = 2400tph, RH200 = 1800tph Significant Improvement in December 2009 and January 2010 since Cut 3 and Cut 4 trims backlog has been mined

• ut

Shovel Efficiencies

Phase 1

2.58% 60.00% 25.84% 11.58% 2.23% 68.20% 22.31% 10.00% 2.58% 51.11% 34.73% 11.58% 17.4% 17.4% 2009 Year Performance 2010 Budget Performance Idle Time

Phase 2

13.7% 13.7% 2011 onwards BSP Bench Heights

Drill Efficiencies

Final High Wall Position Trim Block 2nd Production Block 1st Production Block

Bench Heights Bowl Optimisation

Equipment Type 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 BLAST HOLE DRILL RIG 250mm 28,500,000 57,000,000 O&K RH340 SHOVELS 80,000,000 80,000,000 80,000,000 80,000,000 994 FRONT END LOADER HAULTRUCK CAT 789 18,377,196 36,754,391 HAULTRUCK CAT 793 137,972,778 91,981,852 68,986,389 206,959,167 TRACK DOZER CAT D9R 5,600,000 5,600,000 TRACK DOZER CAT D10R 45,515,268 37,929,390 7,585,878 7,585,878 7,585,878 15,171,756 TYRE DOZER CAT 834 17,054,778 5,684,926 11,369,852 5,684,926 5,684,926 MOTOR GRADER CAT 16H 4,848,308 4,848,308 4,848,308 MOTOR GRADER CAT 24H 12,374,533 12,374,533 WATER TANKER 85 000lt 11,417,365 385 TYPE EXCAVATOR 11,341,038 375 TYPE EXCAVATOR 5,270,519 988 FEL 5,374,260 5,374,260 TYRE HANDLER 5,374,260 SERVICE TRUCKS 2,479,678 2,479,678 2,479,678 2,479,678 Dewatering Truck 2,479,678 2,479,678 Dewatering Excavator Unit 5,270,519 5,270,519 5,270,519 Hiab Trucks 2,000,000 2,000,000 WATER BOWSERS 1,800,000 1,800,000 FUEL BOWSER 1,800,000 1,800,000 LOW BED 2,400,000 SKID STEER 374,134 HIGHWALL SCALER 2,400,000 COMPACTOR Spare RH340 Buckets 6,449,246 Total 14,119,765 50,785,787 165,624,374 99,350,482 174,262,397 215,062,887 252,463,572 278,393,353 18,771,756 4,959,356 7,750,197 1,281,543,927 Equipment Type 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 BLAST HOLE DRILL RIG 250mm O&K RH340 SHOVELS 77,431,189 994 FRONT END LOADER HAULTRUCK CAT 789 HAULTRUCK CAT 793 24,655,583 49,311,166 24,655,583 73,966,749 TRACK DOZER CAT D9R 5,600,000 TRACK DOZER CAT D10R 33,363,800 33,363,800 25,022,850 TYRE DOZER CAT 834 7,226,888 7,226,888 14,453,776 7,226,888 14,453,776 MOTOR GRADER CAT 16H 5,716,367 5,716,367 MOTOR GRADER CAT 24H 14,270,647 14,270,647 WATER TANKER 85 000lt 11,392,410 385 TYPE EXCAVATOR 5,670,519 375 TYPE EXCAVATOR 5,270,519 988 FEL 5,374,260 TYRE HANDLER 5,374,260 SERVICE TRUCKS 2,479,678 2,479,678 2,479,678 Dewatering Truck 2,479,678 2,479,678 Dewatering Excavator Unit 5,270,519 5,270,519 5,270,519 Hiab Trucks 2,000,000 2,000,000 WATER BOWSERS 1,800,000 1,800,000 FUEL BOWSER 1,800,000 1,800,000 LOW BED 2,400,000 SKID STEER 374,134 HIGHWALL SCALER COMPACTOR Spare RH340 Buckets 6,449,246 Total 14,119,765 45,861,207 98,625,695 172,298,659 56,382,993 20,202,170 98,327,895 13,829,875 519,648,259 Variance in Capital FCT 4,924,580 66,998,679 -72,948,177 117,879,404 194,860,717 154,135,677 264,563,478 18,771,756 4,959,356 7,750,197 761,895,668 2010 SBP - Cut 4 v27 (Base Case) 2010 SBP - Cut 3+ without K3

EMV Life Cycle

Average Load per Truck (2008 - 2010/02/10) 150 160 170 180 190 200 210 220 230 200801 200802 200803 200804 200805 200806 200807 200808 200809 200810 200811 200812 200901 200902 200903 200904 200905 200906 200907 200908 200909 200910 200911 200912 201001 201002 201003 201004 201005 201006 201007 201008 201009 201010 201011 201012 793 789 793 Target Payload = 225t 10t (5%) Improvement 789 Target Payload = 180t

Truck Efficiencies

793 U/L 793 U/L 789 U/L 789 U/L Attendance Attendance Shovel Util Shovel Util Shovel W/T Shovel W/T Truck W/T Truck W/T

Operational Delays

Mining Business Sustainability Program Implementation Plan

Ongoing Review

SLIDE 21

SAFE, SIMPLE AND EFFECTIVE!

1 Select optimal depletion strategy 13/4 Select optimal depletion strategy 13/4 Detailed scheduling Detailed pit (incl. K03), stockpiles and the Underground schedules 21/4 Detailed scheduling Detailed pit (incl. K03), stockpiles and the Underground schedules 21/4 Match schedule to Group requirements Finalise SBP & LOM Output Group Requirements Cash flow, EBITDA Dividends, Debt Repayments 5/5 Match schedule to Group requirements Finalise SBP & LOM Output Group Requirements Cash flow, EBITDA Dividends, Debt Repayments Match schedule to Group requirements Finalise SBP & LOM Output Group Requirements Cash flow, EBITDA Dividends, Debt Repayments 5/5 Draft Report (off mine) Draft Report (on mine) 17/5 Draft Report (on mine) 17/5 31/5 9/4 Mine Planning – Pit Optimisation Pit Optimisation studies with reduced ramp widths & increased slope angles (high level Cut 3+ & Cut 4+ schedules) Integrate high level schedules with K03 2009 Base Line SBP updated with current indices Cut 4v27 Preliminary SBP models (Cut 3+, Cut 4+, Cut 4v27, U/G) 30/3 31/3 15/3 9/4 Mine Planning – Pit Optimisation Pit Optimisation studies with reduced ramp widths & increased slope angles (high level Cut 3+ & Cut 4+ schedules) Integrate high level schedules with K03 2009 Base Line SBP updated with current indices Cut 4v27 Preliminary SBP models (Cut 3+, Cut 4+, Cut 4v27, U/G) 30/3 31/3 15/3 Mine Planning – Pit Optimisation Pit Optimisation studies with reduced ramp widths & increased slope angles (high level Cut 3+ & Cut 4+ schedules) Integrate high level schedules with K03 2009 Base Line SBP updated with current indices Cut 4v27 Preliminary SBP models (Cut 3+, Cut 4+, Cut 4v27, U/G) 30/3 31/3 15/3 NOTE: Ore Extraction opportunities divided into:

• Bankable
• High Potential
• Further Opportunities

Mining Equipment efficiencies (shovels & trucks) Mining Bench Height implementation study Operational delay review Truck Bowl Optimisation Equipment Lifecycle review 15/3 20/3 30/3 Ongoing NOTE: Ore Extraction opportunities divided into:

• Bankable
• High Potential
• Further Opportunities

Mining Equipment efficiencies (shovels & trucks) Mining Bench Height implementation study Operational delay review Truck Bowl Optimisation Equipment Lifecycle review 15/3 20/3 30/3 Ongoing Mining Equipment efficiencies (shovels & trucks) Mining Bench Height implementation study Operational delay review Truck Bowl Optimisation Equipment Lifecycle review 15/3 20/3 30/3 Ongoing Underground expansion Iterative verification of the interface with the Underground team 21/4 19/3 Rehabilitation and Closure Liability TBC Underground expansion Iterative verification of the interface with the Underground team 21/4 19/3 Underground expansion Iterative verification of the interface with the Underground team 21/4 19/3 Rehabilitation and Closure Liability TBC Rehabilitation and Closure Liability Rehabilitation and Closure Liability TBC NOTE: Ore Processing opportunities divided into:

• Bankable
• High Potential
• Further Opportunities

All need earliest start dates Plant Recovery factor study (RATU Implementation) Ore Processing Satellite Stockpile treatment Red Area Tailings treatment K03 treatment 30/3 7/4 Mix 03 treatment NOTE: Ore Processing opportunities divided into:

• Bankable
• High Potential
• Further Opportunities

All need earliest start dates Plant Recovery factor study (RATU Implementation) Ore Processing Satellite Stockpile treatment Red Area Tailings treatment K03 treatment 30/3 7/4 Mix 03 treatment Plant Recovery factor study (RATU Implementation) Ore Processing Satellite Stockpile treatment Red Area Tailings treatment K03 treatment 30/3 7/4 Mix 03 treatment Final Report (off mine) 30/6 Final Report (off mine) 30/6 0.5 x Tyre Dia Angle of repose = 37 deg F = 36.9m if berm is 1.8m A = 8.4m Our berms are 1.80 metres high i.e 0m additional for safety reasons 0.0 m safety berm 2 m backbreak Toe = 0m B = 1.8m E = A x a = 29.3m C = 5.6m Dual Haul Road Cross Section 0.0 m for pipes

37m

0.5 x Tyre Dia Angle of repose = 37 deg F = 36.9m if berm is 1.8m A = 8.4m Our berms are 1.80 metres high i.e 0m additional for safety reasons 0.0 m safety berm 2 m backbreak Toe = 0m B = 1.8m E = A x a = 29.3m C = 5.6m Dual Haul Road Cross Section 0.0 m for pipes

37m

Increased North domain boundary Previous North domain boundary Geotech domains and slope changes Increased North domain boundary Previous North domain boundary Geotech domains and slope changes Ultimate Pit (RG) Ultimate Pit (RG) K1 K3

Plan View - Bench 10 (576 amsl)

C4 V27 (Design) C4 V27 (Design)

K1 K2 K3 K4 K1 K1 K2 K2 K3 K3 K4 K4

Skin Analysis Skin Analysis Cut 3 (Design) Cut 3 (Design) Cut 3+ Cut 3+ Cut 4+ Cut 4+ 120m 120m 120m 120m 120m 120m 8.19? 10.2 9.2 7.3 Stripping Ratio 751 561 364 271 Waste 23 14 10 9 LOM @ 4Mt 27 ? 92 Cut 3+ & Cut 4+ (Net) Cut 4+ (HLD) V27 Dgn Cut3+ (HLD) 16 12 11 LOM @3.5Mt 16% 23% 27% Rev/Cost Ratio 55 39 37 Ore 8.2 10.2 9.2 7.3 Stripping Ratio 751 561 364 271 Waste 23 14 10 9 LOM @ 4Mt 27 92 Cut 3+ & Cut 4+ (Net) Cut 4+ (HLD) V27 Dgn Cut3+ (HLD) 16 12 11 LOM @3.5Mt 16% 23% 27% Rev/Cost Ratio 55 39 37 Ore 8.19? 10.2 9.2 7.3 Stripping Ratio 751 561 364 271 Waste 23 14 10 9 LOM @ 4Mt 27 ? 92 Cut 3+ & Cut 4+ (Net) Cut 4+ (HLD) V27 Dgn Cut3+ (HLD) 16 12 11 LOM @3.5Mt 16% 23% 27% Rev/Cost Ratio 55 39 37 Ore 8.2 10.2 9.2 7.3 Stripping Ratio 751 561 364 271 Waste 23 14 10 9 LOM @ 4Mt 27 92 Cut 3+ & Cut 4+ (Net) Cut 4+ (HLD) V27 Dgn Cut3+ (HLD) 16 12 11 LOM @3.5Mt 16% 23% 27% Rev/Cost Ratio 55 39 37 Ore Ultimate Pit (RG) Ultimate Pit (RG)

Plan View - Bench 10 (576 amsl)

K1 K2 K3 K4 K1 K1 K2 K2 K3 K3 K4 K4

Cut 3 (Design) C4 V27 (Design) C4 V27 (Design) Cut 3+ Cut 3+ Cut 4+ Cut 4+ 8.19? 10.2 9.2 7.3 Stripping Ratio 751 561 364 271 Waste 23 14 10 9 LOM @ 4Mt 27 ? 92 Cut 3+ & Cut 4+ (Net) Cut 4+ (HLD) V27 Dgn Cut3+ (HLD) 16 12 11 LOM @3.5Mt 16% 23% 27% Rev/Cost Ratio 55 39 37 Ore 8.2 10.2 9.2 7.3 Stripping Ratio 751 561 364 271 Waste 23 14 10 9 LOM @ 4Mt 27 92 Cut 3+ & Cut 4+ (Net) Cut 4+ (HLD) V27 Dgn Cut3+ (HLD) 16 12 11 LOM @3.5Mt 16% 23% 27% Rev/Cost Ratio 55 39 37 Ore 8.19? 10.2 9.2 7.3 Stripping Ratio 751 561 364 271 Waste 23 14 10 9 LOM @ 4Mt 27 ? 92 Cut 3+ & Cut 4+ (Net) Cut 4+ (HLD) V27 Dgn Cut3+ (HLD) 16 12 11 LOM @3.5Mt 16% 23% 27% Rev/Cost Ratio 55 39 37 Ore 8.2 10.2 9.2 7.3 Stripping Ratio 751 561 364 271 Waste 23 14 10 9 LOM @ 4Mt 27 92 Cut 3+ & Cut 4+ (Net) Cut 4+ (HLD) V27 Dgn Cut3+ (HLD) 16 12 11 LOM @3.5Mt 16% 23% 27% Rev/Cost Ratio 55 39 37 Ore 104.57/CK&VK 79.48/CKW Ca 104 $/crt (FSV) 245.5 791.6 Intrinsic Value (Million US$) 13 50 Bottom Bench 2005 2009 Mineral Resource 20 2.61 12.98 18 7.62 42.26 Cpht (+2#) Carats Million Tonnes (Million) 104.57/CK&VK 79.48/CKW Ca 104 $/crt (FSV) 245.5 791.6 Intrinsic Value (Million US$) 13 50 Bottom Bench 2005 2009 Mineral Resource 20 2.61 12.98 18 7.62 42.26 Cpht (+2#) Carats Million Tonnes (Million) K01 K02 K03

• K03 Whittle Pit optimisation results
• LOM – 10 years stand alone

– Ore tons – 12.5Mt – Carats – 3.4M carats – Waste tons – 15.9Mt – Stripping ratio – 1.28 – Reserve Grade – 27cpht – Resource grade – 18cpht

K01 K02 K03 Version 27 Pit Design

Q1 2010 Q1 2010 Approval Q1 2010 Approval Q2 2010 (study complete) Q2 2010 (study complete) Q1 2011 +

Reduced Ramp Widths Increased Slope Angles Cut 3+ (“tuck-in”) Whittle shells Net Effect Whittle Shells K03 Mining Planning Road Map

Mining Planning Business Sustainability Program Implementation Plan

Ongoing Review

SLIDE 22

SAFE, SIMPLE AND EFFECTIVE!

Coarse Tailings FRD 1 MTP Stores, Services, EMV Primary Crusher Air Field Explosives Magazine Offices Prevailing Wind Direction FRD 2 Access Control & Change House Twin Shaft Complex Dumps K2 K1 K3 K4 Coarse Tailings FRD 1 MTP Stores, Services, EMV Primary Crusher Air Field Explosives Magazine Offices Prevailing Wind Direction FRD 2 Access Control & Change House Twin Shaft Complex Dumps K2 K1 K3 K4 Coarse Tailings FRD 1 MTP Stores, Services, EMV Primary Crusher Air Field Explosives Magazine Offices Prevailing Wind Direction FRD 2 Access Control & Change House Twin Shaft Complex Dumps K2 K1 K3 K4

Work Breakdown Structure (WBS) INPUT SHEETS

Category (Description of work) Grid reference PLANNING AND RECONCILITATION WORKSHEET Annual values: Annual updated liability = A + B - C A: Premature closure (opening balance) B: Liability accruals (additional disturbance) C: Planned rehabilitation (liability reductions) LoM est. Balance Y2 Balance Y1 Balance (C) Rehabilitation Y2 (C) Rehabilitation Y1

• (B) Liability

accrual Y2 (B) Liability accrual Y1 + (A) Premature Y1 (A) Premature Y0 (A) Premature Y End Y3, Y4…… Y2 Y1 Y0 SUMMARY SHEET Roll-up of all sheets P&G’s Contingencies SCOPE Premature Closure Estimate LOM Closure Estimate per annum Quantities (volumes and areas) Master rates schedule (Cost per unit measurement)

• SURVEY

AND RECONCILIATION Work Breakdown Structure (WBS) INPUT SHEETS

Category (Description of work) Grid reference PLANNING AND RECONCILITATION WORKSHEET Annual values: Annual updated liability = A + B - C A: Premature closure (opening balance) B: Liability accruals (additional disturbance) C: Planned rehabilitation (liability reductions) LoM est. Balance Y2 Balance Y1 Balance (C) Rehabilitation Y2 (C) Rehabilitation Y1

• (B) Liability

accrual Y2 (B) Liability accrual Y1 + (A) Premature Y1 (A) Premature Y0 (A) Premature Y End Y3, Y4…… Y2 Y1 Y0 SUMMARY SHEET Roll-up of all sheets P&G’s Contingencies SCOPE Premature Closure Estimate LOM Closure Estimate per annum Quantities (volumes and areas) Master rates schedule (Cost per unit measurement)

• SURVEY

AND RECONCILIATION Work Breakdown Structure (WBS) INPUT SHEETS

Category (Description of work) Grid reference PLANNING AND RECONCILITATION WORKSHEET Annual values: Annual updated liability = A + B - C A: Premature closure (opening balance) B: Liability accruals (additional disturbance) C: Planned rehabilitation (liability reductions) LoM est. Balance Y2 Balance Y1 Balance (C) Rehabilitation Y2 (C) Rehabilitation Y1

• (B) Liability

accrual Y2 (B) Liability accrual Y1 + (A) Premature Y1 (A) Premature Y0 (A) Premature Y End Y3, Y4…… Y2 Y1 Y0 SUMMARY SHEET Roll-up of all sheets P&G’s Contingencies SCOPE Premature Closure Estimate LOM Closure Estimate per annum Quantities (volumes and areas) Master rates schedule (Cost per unit measurement)

• SURVEY

AND RECONCILIATION

Ongoing rehabilitation Working ‘smart’ Initial development of infrastructure and project- related disturbance Additional

• perational

disturbance MINE CLOSURE Closure liability should NO rehabilitation effort be conducted prior to the cessation of mining operations CESSATION OF MINING OPERATIONS Closure liability should ongoing rehabilitation be conducted in line with current mine designs and dumping strategies Closure liability should ongoing rehabilitation be conducted in addition to improved mine designs and deposition strategies Time Liability Initial development of infrastructure and project- related disturbance Initial

• perational

disturbance with little

• pportunity for

rehabilitation Operation of mine Initial

• perational

disturbance Treatment of stockpiles & rehabilitation effort using ex mining machinery Rehabilitation effort post mine closure towards

• btaining

closure certificate Existing Premature closure estimate in this region Existing LoM estimate in this region due to incorporation of smart WRD deposition in 2007 closure estimate. This is, however, not currently being implemented Ongoing rehabilitation Working ‘smart’ Initial development of infrastructure and project- related disturbance Additional

• perational

disturbance MINE CLOSURE Closure liability should NO rehabilitation effort be conducted prior to the cessation of mining operations CESSATION OF MINING OPERATIONS Closure liability should ongoing rehabilitation be conducted in line with current mine designs and dumping strategies Closure liability should ongoing rehabilitation be conducted in addition to improved mine designs and deposition strategies Time Liability Initial development of infrastructure and project- related disturbance Initial

• perational

disturbance with little

• pportunity for

rehabilitation Operation of mine Initial

• perational

disturbance Treatment of stockpiles & rehabilitation effort using ex mining machinery Rehabilitation effort post mine closure towards

• btaining

closure certificate Existing Premature closure estimate in this region Existing LoM estimate in this region due to incorporation of smart WRD deposition in 2007 closure estimate. This is, however, not currently being implemented Ongoing rehabilitation Working ‘smart’ Initial development of infrastructure and project- related disturbance Additional

• perational

disturbance MINE CLOSURE Closure liability should NO rehabilitation effort be conducted prior to the cessation of mining operations CESSATION OF MINING OPERATIONS Closure liability should ongoing rehabilitation be conducted in line with current mine designs and dumping strategies Closure liability should ongoing rehabilitation be conducted in addition to improved mine designs and deposition strategies Time Liability Initial development of infrastructure and project- related disturbance Initial

• perational

disturbance with little

• pportunity for

rehabilitation Operation of mine Initial

• perational

disturbance Treatment of stockpiles & rehabilitation effort using ex mining machinery Rehabilitation effort post mine closure towards

• btaining

closure certificate Existing Premature closure estimate in this region Existing Premature closure estimate in this region Existing LoM estimate in this region due to incorporation of smart WRD deposition in 2007 closure estimate. This is, however, not currently being implemented Existing LoM estimate in this region due to incorporation of smart WRD deposition in 2007 closure estimate. This is, however, not currently being implemented

Life of Mine (LoM) Q2 2010 Q4 2010 + Q1 2011 +

Baseline Program Closure Cost Estimation Premature and LoM Life of Mine Closure Liability & Provisioning Rehab & Closure Scope

Rehabilitation and Closure Liability Management Project

Ongoing Review

SLIDE 23

SAFE, SIMPLE AND EFFECTIVE!

Thank You