Facility visit. 11 October 2005

Transcription

1 Facility visit 11 October 2005

2 Agenda Safety Ore body Mining methods Production Operating costs Capital expenditure Human resources Key business issues

3 Locality Modikwa Platinum Mine BRAKFONTEIN 464 KS AVOCA 472 KS KLIPFONTEIN 465 KS DE KAMP 507 KS ZWARTKOPPIES 413 KS PASCHASKRAAL 466 KS TWICKENHAM 114 KT WATERKOP 113 KT MECKLENBURG 112 KT SURBITON 115 KT CROYDON 120 KT Bushveld Complex Amplats Mines Impala Mines - Gencor Lonrho Mines Goldfields Mines - Northam BAFOKENG IMPALA RPM. RUSTENBURG Rustenburg SOUTH RPM. AMANDELBULT NORTHAM RPM. UNION WESTERN AND EASTERN PLATS AFRICA AFRICA PP RUST Potgietersrust Warmbaths BARPLATS CROCODILE RIVER PRETORIA 25 O Maandagshoek farm Barplats Kennedys Vale 25 O Republic of South Africa LEBOWA Lydenburg BALMORAL 508 KS QUARTZ HILL 542 KS MAGNETS - VLAKTE 541 KS DINGAANS - KOP FERN 543 KS KLOOF 539 KS 3 000m HACKNEY 116 KT DSJATE 249 KT DE KOM ZWEM KT KLOOF 283 KT 2 000m GROOT - VYGEBOOM 284 KT WINNAARSHOEK 250 KT GENOKAKOP 285 KT GARA - TOUW 282 KT HOOGSTE - PUNT 290 KT HOUTBOSCH 323 KT 1 000m FOREST HILL 117 KT CLAPHAM 118 KT DRIEKOP 253 KT MAANDAGSHOEK 254 KT HOEPA - KRANZ 291 KT NOOIT VERWACHT KT TWYFE - LAAR 119 KT ONVERWACHT 292 KT EERSTE GELUK 322 KT Merensky Reef THE SHELTER 121 KT MOOIHOEK 255 KT GROOTHOEK 256 KT HENDRIKSPLAATS 281 KT WINTERVELD 293 KT DOORNBOSCH 294 KT UG 2 Witbank B U S H V E L D C O M P L E X EASTERN BUSHVELD

4 Location JV area

5 Safety

6 Lost time injury frequency rate YTD Act/F_cast

7 Fatalities YTD Act/F_cast

8 Geology Resources/reserves

9 Modikwa Platinum Mine lease area N 24.8 km Total lease area ha Not to scale Mpumalanga Province

10 Modikwa Platinum Mine mining area Base case Phase 1 Phase 2 Phase 3 North shaft extension South shaft extension Deepening of North shaft declines by 1 level commenced in 2005.

11 Stratigraphic column in proximity of UG2 15m 10m UG 3A UG 3 HW 12cm 12cm 5cm Triplet 3 Triplet 2 Triplet 1 TRC Outcropping Merensky & UG2, Westerly Dip ~11 Merensky to UG2 separation approximately 260m Variable middling of triplets and Leuconorite Parting Plane (LPP) to Top Reef Contact (TRC) on UG2 Norite-Fsp Pyroxenite contact cm above MR 0 UG 2 58c m UG2 Channel Stoping Profile - L E G E N D - NORITE FW 15 to 70cm BRC 17cm SPOTTED ANORTHOSITE MOTTLED ANORTHOSITE PYROXENITE PORPHYRITIC PYROXENITE PEGMATOIDAL PYROXENITE 91m UG 1 HARZBURGITE CHROMITITE STRINGER CHROMITITE

12 Optimal Stoping Cut (per shaft area) TRC Leuconorite Unit UG2 107 Planned Planned Planned BRC NORTH SHAFT SOUTH SHAFT HILL ADITS Mine average planned at 102 cm Currently 105cm

13 Vertical grade distribution in UG2 North Shaft South Shaft Average g/t 4E: North 5.65 South 5.99 Total 5.81 Reef channel Hanging wall Foot wall

14 2004 UG2 resource categories (Data Mine model) Measured Resource Indicated Resource Inferred Resource

15 2004 Merensky resource categories (Data Mine model) 117 boreholes Indicated Resource Inferred Resource

16 Resource & reserve statement

17 Exploration status Phase 1 footprint complete by end 2006 Phase 2 drilling commenced in line with current exploration programme 3D seismic will be conducted in 2006 over a target area on North and South Shafts Merensky Exploration continuing trial mining to commence in 2006

18 Drilling programme Phase 1 Phase S# N# Infill

19 On-mine - Exploration drilling Surface Drilling metres

20 Mining methods

21 Original design Twin decline shaft systems Vehicle access decline Belt decline Main strike development on-reef Conventional down-dip stoping Twin raises separated by 5m pillar 90 cm stoping width Mechanised development and tramming Flat management / supervisory structures Self directed, multi-skilled work teams No night shift, two panel cycle Continuous operations (Conops) Fully autogenous milling 200 ktpm, 162 kozpa Onverwacht Hill and Mid Shaft areas included

22 Changes to original design Chairlift decline access Main strike development in the footwall Stoping changed from down-dip to breast 102 cm stoping width Introduced night shift Traditional management structure Ball milling to increase capacity 240 ktpm, 162 kozpa

23 Reef Drive Diagonal Muck Bay Dip Pillar Twin Reef Raise Mining Direction Mined Out Area Unmined Area 200 m 210m 70m Reef Drive Downdip Twin Raise Reef Drive layout

24 Reef Drive Diagonal Muck Bay Strike Pillar Dip Pillar Single Reef Raise Mining Direction Mined Out Area Unmined Area Enlargement 210 m 210m 200 m 6m 3m 80 2m 70m 4m See Enlargement 30 m Reef Drive Downdip Single Raise Reef Drive layout

25 Footwall Drive Mining Direction Mining Direction ASG 105 m PILLARS Mined Out Area Unmined Area See Enlargement 200 m 210 m 10 m Enlargement 8 m 4 m Footwall Drive Breast Footwall layout 30 m Muck Bay 4 m Cross Cut Travelling Way & SO

26 Breast Footwall layout

27 Current mine design

28 Current mine design North shaft

29 Production sources (000 s tons per month) Production area Steady state North Shaft South Shaft Hill Mid Shaft Low grade dev TOTAL

30 Production

31 Conversion to footwall strike development & breast stoping Development required to generate ore reserves Breast mining Footwall drives m²/metre Required to replace m² Dip mining Twin raise & reef drives m²/metre Required to replace m² m²/ Total Dev m²/ Prim.- R/W, TW, BH & Diag m²/ Prim.- Large Ends % of stoping on breast by end 2006, 95% by end % reef drives in footwall by end

32 Total primary development metres / month (Excludes # Sinking) 3,500 3,000 2,500 Metres 2,000 1,500 1, '03 '04 H1 05 History 3,184 2,002 2, to 2004 reduction due to single raise dip mining At steady state breast requires less development than dip to generate the same ore reserves

33 Immediately Available Reserves (Raises Holed) months * * Revised dip method increased rate of ore reserve build up Includes depletion of Hill and mid shaft areas Transition to 100% underground production

34 Face length build-up Metres 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 'Jun '07 'Sep '06 'Mar '06 Aug '05 Immediately available (Holed) Available for equipping (Holed + Ledged) Immediately stopable (Holed + Led. + Equip.) Resourced ( Stoping) Planned ratio stopable: stoping 1,5:1 by end 2006

35 Monthly area mined (m 2 ) 40,000 35,000 30,000 25,000 m² 20,000 15,000 10,000 5,000 0 '03 '04 H1 05 History 22,195 34,842 37,486 Planned steady state 100% underground at m 2 / month

36 Stoping width cm '03 '04 H1 05 History Steady state mine average planned at 102 cm by end 2006

37 Average Tons Milled per month 250, ,000 Tons m ille d 150, ,000 50, H1 05 Other Sources 75,545 44,323 22,886 38,124 HG UG2 119, , , ,543

38 Grade g/t 4E H1 05 Built Up Grade Includes low grade other sources depleted by end 2005 Current underground average grade 4,45 g/t

39 Plant 4E Recovery 90.00% % Recovery 4E 85.00% 80.00% 75.00% 70.00% H1 05 4E Recovery 80.50% 83.60% 84.00% 84.09% Steady state planned recovery 86% Achieved 240 ktpm in May 2005 Expert systems in place circuit optimisation ongoing

40 Equivalent refined Pt Oz / month Pt Oz's (000's) '03 '04 H1 05 History

41 Operating costs

42 Cash cost / ton milled Cash cost / Ton milled R / Ton Milled H1 05 Cash cost / ton milled

43 Cash cost / equivalent refined Pt oz Cash cost / Equivalent Pt oz refined R / Pt oz 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, H1 05 Cash cost / Pt oz 6,598 8,057 7,515 7,283 Lower platinum content of Modikwa ore results in higher unit cost per Pt oz, comparable cost per PGM oz

44 Operating costs Current cash costs per ton milled and Pt oz high as build up continues. Drivers of cost reduction Volume increase 4 mining areas to 2 1,5m of equipped face per m face blasted Novice workforce moving up learning curve Less development required Cost reduction initiatives

45 Capital expenditure

46 Capital expenditure (R000 s) 1,200,000 Total Modikwa 1,000, , , , , H1 05 Total Modikw a 1,077, , , ,628 Approximately R 160 m to be spent on average on LOM ongoing / replacement capital Approximately R 100 m additional to be spent per year during decline deepening

47 Capital expenditure Main Items for 2005 Burgersfort Housing Project R 125 million Flag Boshielo Damwall R 19 million Ore reserve development R60 million - and commencement of North Shaft deepening by 1 level Off mine capex largely complete

48 Human resources

49 Employee relations Community and employee expectations high Non-procedural workplace disruptions higher than normal Significant management effort and focus to educate and mentor workforce and improve relationships Mining Charter Compliance Strategy in place.

50 Human resources development Underground and surface training centres. Increased training of supervisors. Fall Of Ground competency compliant by Dec 2005.

51 Key business issues Improved safety performance Achieve planned volume increase Smooth transition from down dip to breast stoping and moving drives into footwall Further improve efficiency of the mechanised development and tramming Improve efficiencies of stoping teams Major transition commenced, complete in 2006

52 Facility visit 11 October 2005