A joint venture with Impala Platinum Holdings Limited Finance Project Funding R 1.3 billion •50%...

Site Visit – 11 October 2005

A joint venture with Impala Platinum Holdings Limited

Agenda

IntroductionGerhard Potgieter

Project overviewMark Brasler

Operations overviewNico Muller

Drive through Site


Burgersfort

AngloPt / ARM(Modikwa)

AngloPt(Der Brochen)

AngloPt(Atock Mine)

AngloPt(Twickenham)

ARM / ImplatsTwo Rivers


Salene MiningRhodium Reefs

7 km


Two RiversConcentrator

Dwarsrivier Chrome

Klein Dwarsrivier bridge

UG2 Mining

Tailings Dam

Mining Portal

Inyoni Dam


Milestone datesPurchase land & mineral rights December 2001EMPR & mining license approved March 2003WULA approved December 2003Trial Mining & access development January 2004Project submission to ARM & Implats December 2004

Project release, commence construction June 2005Conclude Bank Funding Agreement September 2005

Commence TRP mining production January 2006Commence concentrator ramp up September 2006Commercial operations December 2006Underground Mining at 185 000 tpm June 2007


Permitting

Mining license approved March 2003

Obtained environmental approval in March 2003• Land tenant relocation program November 2001 to June 2004

• Plant & Animal relocation September 2003 to February 2004

North Open Pit EMPR amendment submitted November 2003

Water Use License Application approved December 2003


Project Finance

Project Funding R 1.3 billion• 50% bank funded

• 50% ABSA / 50% Nedcor

• 50% shareholder / equity funded• 55% ARM / 45% Implats

Asset Finance R 0.3 billion• Mining Fleet (ABSA)• Lydenburg Housing Development (Nedcor)


Mine, plant & infrastructureMining

Surface Stockpile 1 000 000 tons (September 2006)Underground 185 000 tpm (LOM)Open pit (north) 40 000 tpm (Years 2 - 5)Adit 25 000 tpm (Years 5 - 13)

Concentrator 2.5 M tpa MF2

82.5 % recovery @ 6E 4.18 g/tDesign 50% waste / No DMS / optical sortingToll smelt & refine @ IRS & Springs

InfrastructureWater supply of 2.9 million m3/a secured


ResourcingEPCM Services

• Concentrator & Infrastructure (DRA)

Major contracts awarded• Mining access development (GLTA- Mining)• FFE Vecor – Mills• GLTA Civils – Civil construction• Cosira – Structural steelwork & Mechanical erection• Outokumpu – Thickeners & Float Cells• ECMP - Tailings Dam• Rooimech – Conveyors• Larox – Concentrate filter• Wade Walker – Portal electrical & instrumentation scope

Lydenburg Housing development• Mvela Phanda Construction / Sunset Bay Partnership


Project / Construction

Overall project progress at 30%

Procurement commitments+ R 950 million to end September 2005+ 30 % BEE / HDSA commitment

Site labour forceCurrently 1,000

Projected maximum 1,800 to 2,000


Overview on site construction


August 2003


N

Mining portal

Development Ore Stockpiles

Inyoni dam

Concentrator plant

Tailings dam

Klein Dwarsrivier bridge


N

Mining portal


N

Developmentore stockpiles

Klein DwarsrivierBridge


N

Concentrator


N

Tailings dam


N

Inyoni dam

Lydenburg HousingDevelopment


Operations Overview

Nico Muller


Mining Access

N

Bulk Sample Shaft



Str

ike

dis

tance

400m

Main decline 690mReef decline 540m

Extended Trial Mining Programme

Footwall conveyor development 550m

300m Strike developm

ent

On reef dip development 330m


FW1 Pegmatoid

FW2 Norite

HW1 Pyroxenite

UG2 Leader

Pyroxenite Middling

UG2

Pyroxenite Lenses

Main decline 690mReef decline 540m

Str

ike

dis

tance

400m


Geology

Channel cmg/t1,064cmg/t

9.06g/tUG2 Grade

5.37g/tChannel Grade

5.15g/tStope Head Grade

1.98mChannel Width

1.15mUG2 Width

415,000tProgressive Stockpile

4.47g/tStockpile Grade


885cmg/t

6.26g/t

4.52g/t

4.28g/t

1.96m

1.20m

50,000t

3.86g/t

Sep 05Description Trial Mining

Burgersfort

AngloPt / ARM(Modikwa)

AngloPt(Der Brochen)

AngloPt(Atock Mine)

AngloPt(Twickenham)

Salene Mining(Rhodium Reefs)

Aquarius(Everest South)

Impala(Marula)

106 cm572 cmg/tPt:Pd=1:1


Steelpoort Gap

185 cm781 cmg/tPt:Pd=5:3

4 128 16

Typical 6E Grade Profile

(6E g/t)


Tons X 106

UG2 Resource Grade

Ptg/t

Pdg/t

Rhg/t

Aug/t

44E g/t 66E g/t

MeasuredIndicated

Inferred

11.748.7Nil

2.952.07

1.731.35

0.550.38

0.040.05

5.273.86

6.394.62

Total 60.4 2.23 1.41 0.41 0.05 4.10 4.93

Tons X 106

UG2 Reserve Grade

Ptg/t

Pdg/t

Rhg/t

Aug/t

44E g/t 66E g/t

ProvenProbable

10.529.8

2.041.86

1.151.20

0.380.35

0.030.03

3.593.44

4.354.11

Total 40.3 1.91 1.19 0.36 0.03 3.48 4.18

Resources & Reserves


Mining

Mining reserve 40 MtLife of mine, 20 yearsUnderground mine with portal accessUnderground production of 185 000 tpmFully mechanized board & pillar miningOther ore supplies

Development ore stockpileNorth pit


Planned Open Cast Mining

North Open Pit lifespan of 2 to 4 years

1.4 million tons of ore

60m highwall

Production Rate 40 000 tons/month


Mining Production


-

50

100

150

200

250

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

Ktp

m

TOTAL ROM - ktpm

U/G ROM produced ktpm

O/P ROM produced ktpm

Adit ROM produced ktpm

-

50

100

150

200

250

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

Ktp

m

TOTAL ROM to Plant - ktpm

U/G ROM to Plant - ktpm

O/P ROM to Plant - ktpm

Adit ROM to Plant - ktpm

Concentrator feed


50% U/G ROM50% Stockpile

Average annual sales

240 000 Oz PGMs

119 000 Oz Pt 74 000 Oz Pd 22 000 Oz Rh


Operational Labour

Total labour plan = 1000 people650 Mine employees

350 Contracted out services

Employment of local labourTo the extent possible

Initial skills through contracting


Social Development

-Sustainabilityassessment-Consultation

-Review closureplans-Retrenchment-Consultation

-Infrastructuresupport-Agriculturalprojects-Local economicsustainability-ABET-HIV-Capacity building

-Establishforums-Recruitment-Training-SMEdevelopment-Social plan

-Social profiling-Socio-economicimpact assessment-Consultation-Skills assessment-Relocation

SocialActivities

+/- 20 years+/- 2 years+/- 3 years

- Environmentalmonitoring

-Production reduced-Decommissioning-Rehabilitation

- Mineoperational

- Construction-Feasibility studies-EIA-EMPR-Planning-Mine application-Land purchase-Initial operations

MiningActivities

Monitoring PhaseClosure PhaseOperationalPhase

Project PhaseFeasibility Phase

NowSite Visit – 11 October 2005

Regional and Local Authorities

Two Rivers Community Forum

I & APs

Alignment with mining related forums.

Stakeholder engagement


QUESTIONS


A joint venture with Impala Platinum Limited

A joint venture with Impala Platinum Holdings Limited Finance Project Funding R 1.3 billion •50%...

Documents

Transcript of A joint venture with Impala Platinum Holdings Limited Finance Project Funding R 1.3 billion •50%...