World Leader in Platinum Facility Visit March 2003
ANGLO AMERICANPLATINUM CORPORATION
Eastern Limb Facility Visit2003
5 March 2003
A member of the Anglo American plc group
World Leader in Platinum Facility Visit March 2003
EASTERN LIMBIN CONTEXT
Chris SheppardDivisional Director : East Mines
A member of the Anglo American plc group
World Leader in Platinum Facility Visit March 2003
AGENDA
The Eastern LimbKey issuesOperations : PPLOperations : LebowaExpansion issuesConclusion
World Leader in Platinum Facility Visit March 2003
EASTERN LIMB OF THE BUSHVELD COMPLEX
N
TWICKENHAMLEBOWA
Modikwa
Lydenburg
Mogalakwena
WitbankPRETORIA
Burgersfort
Der Brochen
Steelpoort
Polokwane MIDDELPUNT HILL
PP RUST
World Leader in Platinum Facility Visit March 2003
EASTERN LIMB EXPANSION :KEY ISSUES
Maintain efficient steady state production at existing operationsDesign, construct, commission and optimise new projectsDevelop and retain appropriate skillsEstablish and nurture successful Joint VenturesFacilitate broad based HDSA empowermentIntegrate operations with communities and achieve sustainable community upliftment
World Leader in Platinum Facility Visit March 2003
EASTERN LIMB EXPANSION :ANGLO PLATINUM APPROACH
Holistic approach
Appropriate skills
Knowledge sharing and continuous business improvement
Relationship building
World Leader in Platinum Facility Visit March 2003
EASTERN LIMB EXPANSION :MAGNITUDE
Existing operations Refined Pt Oz 2002- PP Rust 165 000- Lebowa 102 000
Announced projects- Modikwa JV 162 000- Polokwane Smelter- Twickenham Project 160 000- Total announced 589 000 (16% of 3,5m Oz)
Projects in progress- Der Brochen EASTERN LIMB: A LARGE CONTRIBUTOR- Booysensdal JV- Paschaskraal JV
World Leader in Platinum Facility Visit March 2003
OPERATIONSPOTGIETERSRUST PLATINUM MINE
2001 : 4.27 million tons milled211 000 ozs refined Pt
2002 : 4.37 million tons milled165 000 ozs refined Pt
Limited flexibility due to Ga–Pila constraints- South pit low grade intrusion- Extensive drilling programme- Accelerated access to mini pit- Lower grades at increased throughput- Containment of unit costs / tons mined
Ga-Pila relocation successful
World Leader in Platinum Facility Visit March 2003
POTGIETERSRUST PLATINUM MINE
POTGIETERSRUSTPLATINUMS LIMITED
PLATREEFOUTCROP
OVERYSEL 815 LR
ZWARTFONTEIN 818 LR
VAALKOP 819 LR
SANDSLOOT 236 KR
TWEEFONTEIN 238 KR
KNAPDAAR 234 KR
RIETFONTEIN 240 KR
0 52.5
Kilometres
_̂
_̂
Sandsloot Pit
Mini Pit
N
World Leader in Platinum Facility Visit March 2003
OPERATIONSLEBOWA PLATINUM MINE
2001 : 1.40 million tons milled89 000 ozs refined Pt
2002 : 1.55 million tons milled102 000 ozs refined Pt
Upgraded plant operating to planImproved ore reserve positionSignificant improvement in outputs and profitability
World Leader in Platinum Facility Visit March 2003
LEBOWA PLATINUM MINE
UG2 Merensky
LEBOWAPLATINUM MINE
DIAMAND 422 KS
ZEEKOEGAT 421 KS
MIDDELPUNT 420 KS
UMKOANESSTAD 419 KS
BRAKFONTEIN 464 KS
0 52.5
Kilometres
_̂_̂Middelpunt Adits
Vertical Shaft
_̂_̂UM Inclines
N
World Leader in Platinum Facility Visit March 2003
BACKGROUND TO LPM
History- 1968 – ATOK- 1977 – JCI
Challenges- Ageing infrastructure- Potholing common
Mining methods- Merensky : Conventional- UG2 : Hybrid
World Leader in Platinum Facility Visit March 2003
THE LPM TURNAROUNDA totally new management team was appointed during 2001Developing a winning culture amongst employeesStrict cost management was non-negotiable but delegated to the point of controlThe attraction and retention of skilled people was targetedThe mining optimisation initiative focused on team development and mining process de-bottleneckingThe recognition and reward scheme was revised to “change behaviour” at LPMEffective and efficient communication from “top to bottom”and from “bottom up-wards” was implementedAll contractors on the mine were converted to an output-based payment method
World Leader in Platinum Facility Visit March 2003
LEBOWA PLATINUM MINEAnnual Lost Time Injuries Frequency Rate
0.0
0.2
0.4
0.6
0.8
1.0
1.2
2001 2002
World Leader in Platinum Facility Visit March 2003
LEBOWA PLATINUM MINEAnnual Stoping ( m2 )
200000
250000
300000
350000
400000
450000
500000
1998 1999 2000 2001 2002
World Leader in Platinum Facility Visit March 2003
LEBOWA PLATINUM MINEAnnual Tons Milled (kt)
600700800900
1000110012001300140015001600
1998 1999 2000 2001 2002
World Leader in Platinum Facility Visit March 2003
LEBOWA PLATINUM MINEHead Grade (g/t)
4
4.1
4.2
4.3
4.4
4.5
4.6
4.7
1998 1999 2000 2001 2002
World Leader in Platinum Facility Visit March 2003
LEBOWA PLATINUM MINEAnnual Platinum Ounces Produced
6000065000700007500080000850009000095000
100000105000110000
1998 1999 2000 2001 2002
World Leader in Platinum Facility Visit March 2003
LEBOWA PLATINUM MINEAnnual Cost ( R/Pt Ounce )
2000
2500
3000
3500
4000
4500
5000
1998 1999 2000 2001 2002
World Leader in Platinum Facility Visit March 2003
LEBOWA PLATINUM MINEAnnual Profit (Rm)
-500
50100150200250300350
1998 1999 2000 2001 2002
World Leader in Platinum Facility Visit March 2003
LEBOWA PLATINUM MINEProductivity m2/stoping employee
2022242628303234363840
1998 1999 2000 2001 2002
World Leader in Platinum Facility Visit March 2003
THE LPM FUTURE
Significant ore reserves available on Merensky and UG2 horizonsMining authorisation exists for all farms within lease areaFeasibility studies are currently in place to evaluate various options to either sustain or expand the current operationsLPM has developed a reputation for DELIVERY
World Leader in Platinum Facility Visit March 2003
EASTERN LIMB EXPANSION ISSUES
Regional infrastructure co-ordinationIntegrated development planningHousingMedium to long term water requirementsRecruitment and trainingEmpowerment
World Leader in Platinum Facility Visit March 2003
EASTERN LIMB TRAINING ISSUES
Learnt lessons from previous projectsLearnershipsInitial skills and team trainingInduction via 10 day integrated team training intervention
- Adventure related experiential learning technique
- Behaviour based safety initiative included
World Leader in Platinum Facility Visit March 2003
EMPOWERMENT ANDSMALL & MEDIUM ENTERPRISE
DEVELOPMENT
High priority given to local empowerment and SME developmentResources dedicated to development of capacityAll contractors required to maximise the usage of local labour and companiesAlliances & JVs with local companies encouragedClose liaison with Provincial and local authorities
World Leader in Platinum Facility Visit March 2003
CONCLUSION
Holistic approachWell managed steady state operationsResources secured by agreement with governmentProjects in placeJoint ventures in place and under negotiationWell placed to comply with Minerals Act and Charter requirements
World Leader in Platinum Facility Visit March 2003
EASTERN LIMBIN CONTEXT
QUESTIONS
A member of the Anglo American plc group