2007 ANNUAL REPORT we do it better HIGHLIGHTS OF F2007 Record headline earnings, up by 161% to R1.2 billion First dividend declared of 150 cents per share Record sales of PGMs and iron, manganese and chrome ores Extensive capital programme undertaken during the year: Construction of 10 million tonnes per annum Khumani Iron Ore Mine on schedule Go-ahead for 6.7 million tonnes per annum Goedgevonden Coal Project and Richards Bay Coal Terminal entitlement of 3.2 million tonnes per annum achieved Expansion to 100 000 tonnes per month completed at Nkomati Mine, ahead of schedule and on budget 100% 100%** 51% 65% 16% Exploration Gold TEAL Harmony Platinum Ferrous Coal (primary listing on TSX) (primary listing on JSE) PGMs Iron Ore Zambia 10% 20% Xstrata Coal 50% Modikwa* 50% Beeshoek South Africa 100%•Konkola North 55% Two Rivers 50% Khumani 70% Mwambashi 51% Kafue JV Nickel, PGMs Manganese Ore 51% Goedgevonden 70% Copperbelt JV and chrome 50% Nchwaning 50% Nkomati 50% Gloria DRC 60% Kalumines Manganese Alloys PGM exploration 50% Cato Ridge (CR) Namibia 90% Kalplats 25% CR Alloys 100% Otjikoto Chrome Ore 50% Dwarsrivier Ferrochrome 50% Machadodorp * Assets held through the ARM ** Assets held through a 50% • Konkola North is subject to a Mining Consortium, effective shareholding in Assmang Limited buy-in right up to 20% (5% interest at 41.5%,the balance carried) by state-owned ZCCM held by the local communities Investment Holdings plc SOUTH AFRICAN OPERATIONS Modikwa Platinum Mine Beeshoek Iron Ore Dwarsriver Mine Chrome Goedgevonden Mine Coal Project Nchwaning & Gloria Kalplats PGM Two Rivers Manganese Exploration Limpopo Platinum CORPORATE PROFILE Mines Project Mine Gauteng African Rainbow Minerals Limited (ARM) is a leading, niche diversified Khumani North West Mpumalanga Iron Ore Mine mining and minerals company, based in Johannesburg, South Africa, with Free State excellent long-life low-cost assets in key commodities. The company KwaZulu- owns and operates most of its assets. ARM’s “We do it better” Natal Lesotho Northern Cape Nkomati management style is supported by experience and a focus on Mine entrepreneurship, which adds significant value to its business.An integral part of ARM’s business is the forging of partnerships with key players in Eastern Cape Cato Ridge the commodity sectors to ensure that ARM is at the forefront of Ferromanganese technological development and global practices and has access to key Works Western Cape markets and to value-generating growth opportunities. Machadodorp Ferrochrome Works ARM in its current form was formed in May 2004, to explore, Exploration Investments (Pty) Ltd (ARMI) were bolstered with EXPLORATION AND DEVELOPMENT develop, operate and hold significant interests in the South the development of Modikwa Platinum Mine in a joint venture PROSPECTS HELD BY TEAL IN AFRICA African and African mining industry. The company has with Anglo Platinum Limited in 2001. ATTRIBUTABLE EBIT SEGMENTAL CONTRIBUTION interests in: (excluding exploration and corporate costs) ferrous metals through its holding in Assmang Limited; In May 2003, ARMgold merged with Harmony to create the platinum group metals (PGMs) and nickel held through world’s sixth largest gold company and, in May 2004, a range Platinum 37.0% a range of joint ventures and partnerships; of indivisible transactions involving certain interests of Avmin, Ferrous Metals 42.5% coal, through its interest in Xstrata Coal South Africa ARMgold and Harmony resulted in the formation of two Kalumines (XCSA) and the Goedgevonden Coal Project; Nickel 20.3% Copper- entities, Harmony in its current form and ARM. Cobalt exploration in copper, cobalt and other base metals Coal 0.2% Project outside of South Africa, through TEAL Exploration & Mining Incorporated (TEAL); In November 2005, ARM listed TEAL on the Toronto Stock gold, through its interest in Harmony Gold Mining Exchange and later on the JSE Limited, into which ARM’s non- Company Limited (Harmony). South African exploration portfolio was injected. This exploration portfolio includes copper projects in Zambia, a Copperbelt copper-cobalt project in the Democratic Republic of Congo Konkola Joint ARM’s history goes back much further, to 1933 when the North Venture Anglo-Transvaal Consolidated Investment Company Limited (DRC) and a gold project in Namibia. Copper DEMOCRATIC Exploration Project REPUBLIC Area was incorporated as a mining, finance and industrial holding OF THE CONGO (DRC) company. That group was unbundled in 1998, allowing The formation of ARM Coal, the company’s new coal Anglovaal Limited to focus on its core mining operations investment, was announced in February 2006. ARM Coal holds through Anglovaal Mining Limited (Avmin). a 20 percent interest in the existing coal operations of XCSA, Mwambashi Kafue Joint Copper Venture Exploration Project Zambia and a 51 percent interest in an unincorporated joint venture Area In 1994, ARM Executive Chairman Patrice Motsepe started which holds the Goedgevonden Coal Project. ARM has a direct Future Mining, a contract mining company which, following a 10% interest in the existing coal operations of XCSA. series of acquisitions of gold interests from Anglo American Namibia Corporation of South Africa Limited, led to the formation of Otjikoto Gold Project ARMgold. ARMgold Limited was listed in May 2002. The & Otavi Exploration platinum assets acquired in African Rainbow Minerals and Area SOUTH AFRICAN OPERATIONS Modikwa Platinum Mine Beeshoek Iron Ore Dwarsriver Mine Chrome Goedgevonden Mine Coal Project Nchwaning & Gloria Kalplats PGM Two Rivers Manganese Exploration Limpopo Platinum CORPORATE PROFILE Mines Project Mine Gauteng African Rainbow Minerals Limited (ARM) is a leading, niche diversified Khumani North West Mpumalanga Iron Ore Mine mining and minerals company, based in Johannesburg, South Africa, with Free State excellent long-life low-cost assets in key commodities. The company KwaZulu- owns and operates most of its assets. ARM’s “We do it better” Natal Lesotho Northern Cape Nkomati management style is supported by experience and a focus on Mine entrepreneurship, which adds significant value to its business.An integral part of ARM’s business is the forging of partnerships with key players in Eastern Cape Cato Ridge the commodity sectors to ensure that ARM is at the forefront of Ferromanganese technological development and global practices and has access to key Works Western Cape markets and to value-generating growth opportunities. Machadodorp Ferrochrome Works ARM in its current form was formed in May 2004, to explore, Exploration Investments (Pty) Ltd (ARMI) were bolstered with EXPLORATION AND DEVELOPMENT develop, operate and hold significant interests in the South the development of Modikwa Platinum Mine in a joint venture PROSPECTS HELD BY TEAL IN AFRICA African and African mining industry. The company has with Anglo Platinum Limited in 2001. ATTRIBUTABLE EBIT SEGMENTAL CONTRIBUTION interests in: (excluding exploration and corporate costs) ferrous metals through its holding in Assmang Limited; In May 2003, ARMgold merged with Harmony to create the platinum group metals (PGMs) and nickel held through world’s sixth largest gold company and, in May 2004, a range Platinum 37.0% a range of joint ventures and partnerships; of indivisible transactions involving certain interests of Avmin, Ferrous Metals 42.5% coal, through its interest in Xstrata Coal South Africa ARMgold and Harmony resulted in the formation of two Kalumines (XCSA) and the Goedgevonden Coal Project; Nickel 20.3% Copper- entities, Harmony in its current form and ARM. Cobalt exploration in copper, cobalt and other base metals Coal 0.2% Project outside of South Africa, through TEAL Exploration & Mining Incorporated (TEAL); In November 2005, ARM listed TEAL on the Toronto Stock gold, through its interest in Harmony Gold Mining Exchange and later on the JSE Limited, into which ARM’s non- Company Limited (Harmony). South African exploration portfolio was injected. This exploration portfolio includes copper projects in Zambia, a Copperbelt copper-cobalt project in the Democratic Republic of Congo Konkola Joint ARM’s history goes back much further, to 1933 when the North Venture Anglo-Transvaal Consolidated Investment Company Limited (DRC) and a gold project in Namibia. Copper DEMOCRATIC Exploration Project REPUBLIC Area was incorporated as a mining, finance and industrial holding OF THE CONGO (DRC) company. That group was unbundled in 1998, allowing The formation of ARM Coal, the company’s new coal Anglovaal Limited to focus on its core mining operations investment, was announced in February 2006. ARM Coal holds through Anglovaal Mining Limited (Avmin). a 20 percent interest in the existing coal operations of XCSA, Mwambashi Kafue Joint Copper Venture Exploration Project Zambia and a 51 percent interest in an unincorporated joint venture Area In 1994, ARM Executive Chairman Patrice Motsepe started which holds the Goedgevonden Coal Project. ARM has a direct Future Mining, a contract mining company which, following a 10% interest in the existing coal operations of XCSA. series of acquisitions of gold interests from Anglo American Namibia Corporation of South Africa Limited, led to the formation of Otjikoto Gold Project ARMgold. ARMgold Limited was listed in May 2002. The & Otavi Exploration platinum assets acquired in African Rainbow Minerals and Area ARM PLATINUM ARM Platinum comprises ARM’s interests in During F2007, the platinum and nickel operations the following platinum and