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Amandelbult

Investment Analysts and Fund Investment Analysts and Fund Managers VisitManagers Visit

Amandelbult PAmandelbult Platlatinum Mineinum Mine

“We at Amandelbult will consistently “We at Amandelbult will consistently improve on our superior performance and improve on our superior performance and

enhance our value driven business culture”.enhance our value driven business culture”.

26 MAY 2004

Amandelbult’s ValuesAmandelbult’s Values

• Safety• Our people• The environment• Stakeholder relationships• Innovation• Business success

AgendaAgenda

• Location & Mine infrastructure layout

• Safety and Environment

• Resources and Reserves

• Mining Method

• Production

• Operating Cost

• Capital Programme

• Human Resources

• Key Business Issues

Location & Mine Infrastructure Location & Mine Infrastructure LayoutLayout

LocationLocation

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AMANDELBULT

UNION

BAFOKENG/RASIMONESTYLDRIFT JV

RUSTENBURG

POTGIETERSRUSTPLATINUMS LIMITED

TWICKENHAM

DER BROCHEN

LEBOWA PLATINUM MINES

ð

LIMPOPO

MPUMALANGA

GAUTENG

NORTH-WEST

RUSTENBURGPRETORIA

WITBANK

MOKOPANE (POTGIETERSRUS)

POLOKWANE (PIETERSBURG)

BELA BELA (WARMBATHS)

JOHANNESBURG

NORTHAM

PANDORA JV

BOOYSENDAL JV

MODIKWA

BURGERSFORT

LYDENBURG

PASCHASKRAAL JV

LegendBushveld Complex

Anglo Platinum

Anglo Platinum - Joint Venture

Impala Platinum Mines

Lonmin PLC

Northam Platinum Limited

Southern Era

Merensky

UG2

Platreef

UNKI PROJECT

Botswana

Zimbabwe

MozambiqueNamibia

±

Republicof

South AfricaPolokwane Smelter

0 2010

Kilometres

AmandelbultAmandelbult Surface PlanSurface Plan

Mining operationsMining operations

SHE StrategySHE Strategy

Continuous reduction of at risk behavior, sub Continuous reduction of at risk behavior, sub standard conditions, health hazards and standard conditions, health hazards and

environmental incidents.environmental incidents.

Safety and EnvironmentSafety and Environment

Amandelbult 4 LIFE

• 4 Pillars of Safety system• Planned inspections• PTO’s• Accident/Incident investigation• Group Meetings

• Lead by example• Implement OTTO• Friendly and Practicable standards• Eliminate at risk behavior

Total Injuries

0

50

100

150

200

250

Feb'

01 Apr

Jun'

01 Aug

Oct

Dec

Feb'

02 Apr

June

'02 Aug

Oct

Dec

Feb'

03 Apr

June

'03 Aug

Oct

Dec

Lost Time Injury Frequency RateLost Time Injury Frequency RateLost Time Injury Frequency Rate

0.00

2.00

4.00

6.00

8.00

10.00

12.00

Feb'

01 Apr

Jun

Aug'

01 Oct

Dec

Feb'

02 Apr

June

Aug'

02 Oct

Dec

Feb'

03 Apr

June

Aug'

03 Oct

Dec

Total Number of FatalitiesTotal Number of FatalitiesTotal Number of Fatalities

0

2

4

6

8

10

12

14

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Years

Numb

er

• EMS Status• ISO14001 Certification achieved in February 2004

• Water Consumption and Discharge• Closed circuit water reticulation

• Water balance implemented

• Waste management• Effective system with permitted landfill site on mine

• Dust• Dust fall out low

• Public Participation• Bi-annual environmental committee meeting held

• Social Issues• Transformation forum

• Addicted to business program

• Environmental awareness interventions at local schools

EnvironmentEnvironment

Opencast Mining OperationsOpencast Mining Operations

Opencast RehabilitationOpencast Rehabilitation

Mineral Reserves and Resources

Mineral ReservesMerensky UG2 UG2 OpencastReserves Grade Reserves Grade Reserve GradeMt g/t 4E Mt g/t 4E Mt g/t 4E

Proved 22.9 6.42 82.1 4.61 1.4 6Probable 90 6.59 249.5 4.65Total 112.9 6.56 331.5 4.64 1.4 6

Mineral ResourcesMerensky UG2Resources Grade Resources GradeMt g/t 4E Mt g/t 4E

MeasuredIndicated 20.8 7.81 26.4 5.03Inferred 92.3 7.84 233.5 4.75Total 113 7.83 259.9 4.78

Merensky Resources

Resource ClassificationMeasuredIndicated

Indicated (As per GC overwrite)Inferred

UG2 ResourcesUG2 Resources

Resource Classification

Measured

Indicated

Inferred

Merensky reef Merensky reef faciesfacies

Merensky Reef Merensky Reef CharacterisiticsCharacterisitics

UG2 Reef CharacteristicsUG2 Reef Characteristics

Immediately Available Ore Reserves

16

17

18

19

20

21

22

Months 21.1 19 18 18 19.9

1999 2000 2001 2002 2003

3 Shaft Seismic Survey3 Shaft Seismic Survey

Very clean andstable block

Stable block

Stable block

Complex zone

Still some noiseon surface

Clean and stableblock

Pothole Reef CharacteristicsPothole Reef Characteristics

Mining MethodMining Method

Mining MethodMining Method

• West• Designed as conventional breast mining

• Central• Section 2 conventional breast mining

• Section 7 fully mechanized room and pillar

• East• Designed as conventional breast mining

• Merensky• Original design 100ktpm, upgraded over time to current capacity of

320ktpm

• UG2• Original design 100ktpm; 1st upgrade to 210ktpm and future

proposed upgrade to 285ktpm

• Opencast (UG2)• Original Merensky plant converted to 25ktpm UG2 unit

• New 30ktpm plant erected

• Total O/C capacity 55ktpm

Concentrator CapacitiesConcentrator Capacities

Mine Infrastructure LayoutMine Infrastructure Layout

Mine Infrastructure LayoutMine Infrastructure Layout28 West Twin Raise Bore

Surface

F/W Winze

5 Level

6 Level

Sub Incline Rai

se B

oreh

oles

Reef

Breast Layout Breast Layout -- SchematicSchematic

BoxfrontHaulage

BREAST LAYOUT

• X/Cuts 200m apart

• Raise on reef to upper level (200m)

• Orepasses to X/Cut and Hlge

Travelling Way

Raise

Cross Cut

Fully Mechanized LayoutFully Mechanized Layout

Fully Mechanized LayoutFully Mechanized Layout

1.5m

1.2m Roof bolts

Reef

ledge

road

Throw blast zone

Throw blast zoneThrow blast zone

ProductionProduction

DevelopmentDevelopmentDevelopment Meters

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

Met

res

CAPITAL M 4470 2269 1493 1607 1430

Total W/C M 36955 37268 44816 44055 47460

TOTAL M 41425 39537 46309 45662 48890

1999 2000 2001 2002 2003

%UG2 Production%UG2 ProductionUG2 mined as % of total output

0

10

20

30

40

50

60

70

80

90

100

%

UG2 mined as % of total output 29 32 36 44 46

1999 2000 2001 2002 2003

Tons Milled

4,000

4,500

5,000

5,500

6,000

6,500

7,000

7,500

1999 2000 2001 2002 2003

Years

Tons

mille

d 00

0

Grade 4E Grade 4E g/tg/t

0

2

4

6

8

10

g/t

4E

Built Up Grade 5.86 5.56 5.68 5.86 5.76

1999 2000 2001 2002 2003

Equivalent refined Pt ozEquivalent refined Pt oz

200

250

300

350

400

450

500

550

600

650

700

1999 2000 2001 2002 2003

Years

000

oz

4E4E PrillPrill SplitsSplits

Current Concentrator 4E Prill Splits

Merensky UG2Platinum 62.09 58.44

Palladium 29.66 29.06

Rhodium 4.96 11.76

Gold 3.27 0.74

Recovery (Concentrator)Recovery (Concentrator)

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

% R

ec

ov

ery

4E

4E Recovery 82.88% 82.83% 85.01% 86.25% 83.72%

1999 2000 2001 2002 2003

Operating CostsOperating Costs

Cash onCash on--mine costsmine costsRand/ ton milled

0

50

100

150

200

250

300

350

400

450

500

Rand

s

R/ton milled 152 167 184 212 242

1999 2000 2001 2002 2003

Cash onCash on--mine costsmine costsR/oz equiv. refined Pt

0

1,000

2,000

3,000

4,000

5,000

6,000

Ran

d's

R/oz equiv.refined Pt 1,618 1,886 1,995 2,210 2,607

1999 2000 2001 2002 2003

Profitability and Volume per Mine 2003Profitability and Volume per Mine 2003

Group average 28,0%

Modikwa0,5%

RS UG2 Project4,0%

BRPM10,1%

US20,4%

LPM20,5%

PPL28,6%

RS29,4%

AS50,4%

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

35,0%

40,0%

45,0%

50,0%

55,0%

0 300 600 900 1 200 1 500 1 800 2 100 2 400

Equivalent Pt oz (000's)

Ope

rati

ng M

argi

n %

Unit CostsUnit CostsUnit Costs

Cash on-mine cost per equiv. Pt oz refined

• Planned increase 12% above 2003• Cost Optimization Target 9% above 2003

Production InitiativesProduction InitiativesProduction Initiatives

• Grade Improvement

• Recovery Improvement

• Opencast Mining

Cost InitiativesCost InitiativesCost Initiatives

• Labour – Numbers, efficiencies, overtime etc.

• Stores – Steel balls and chemicals

• Utilities – Electricity management.

• Contractors – Rate increases.

• Sundries – Telephones, printing etc.

CapitalCapital

Capital ExpenditureCapital ExpenditureCapital Expenditure

0

100

200

300

400

500

600

700

800

900

1000

1999 2000 2001 2002 2003

Years

R's

000

000

Key current capital projectsKey current capital projects

• 2# Capital development

• Tailings dam extension

Key future capital projectsKey future capital projectsKey future capital projects

• Possible plant expansion to process incremental UG2 production

• Additional ore pass system at 1 Shaft

Ongoing Capex level +/- R400m pa

• No3 Vertical Shaft

Human ResourcesHuman Resources

In Service EmployeesIn Service EmployeesIn Service Employees

UMOOperators

Contractors

Total

10028745

2663

9747

Grand Total 12410

Territorial Analysis of EmployeesTerritorial Analysis of EmployeesTerritorial Analysis of Employees

4%

11.2%

6%

23.4%

26%

0.05%

0.56%

0.36%0.05%

1.6%

0.11%

0.4%

70 Km Raduis 26.27%Eastern Cape 23.40%Lesotho 6.00%Limpopo 11.20%Swaziland 1.60%Free State 0.56%Mpumalangga 0.40%Gauteng 0.36%Kwa Zulu Natal 0.11%Botswana 0.05%N/Cape 0.05%Mozambique 4.00%

AccommodationAccommodationAccommodation

Housing Bonds subsidy

52044433197

Hostel ResidentsRent Subsidy

Dedensification of Hostels

Displacements over 5 Years = ± 1500

Tumela

1 9891782

3250

DishabaMlanje

Hostels De-densifying

13521440

2380

Capacity

• Health• Education Infrastructure• Education Capacity Building• Basic Services• Job Creation

Focus of SED Spending

Employee RelationsEmployee RelationsEmployee Relations

Operators bargaining UnitRepresentatives Full Time Regional

NUM 54.1% 51 2 1

BEMWU 15.1% 30

Supervisory Bargaining Unit

UASA 67.9% 23 2 1

NUM 12.7%

Key Business IssuesKey Business Issues

Key Business IssuesKey Business IssuesKey Business Issues

• Maintain Merensky volumes during move from 1Shaft to 2 Shaft

• Mining efficiencies

• Cost optimisation

• Charter compliance