MODIKWA PLATINUM MINE FACILITY VISIT 4 March 2003 AgAgeennddaa Mike Jooste : Business Leader n Location and setting n Project parameters n JV structure and management n Mine layout and mining method n Geology and exploration n Training and development n Socio- economic development Ron McGregor : Business Area Leader : Process n Concentrator and metallurgy 25 O ZWARTKOPPIES 413 KS O BRAKFONTEIN 25 464 KS WATERKOP 113 KT KLIPFONTEIN 465 KS MECKLENBURG PASCHASKRAAL 466 KS 112 KT Republic of South Africa N AVOCA 472 KS CROYDON DE KAMP TWICKENHAM 120 KT 507 KS 114 KT SURBITON 115 KT BALMORAL 500 0 5 00 1 000 508 KS QUARTZ FOREST HILL THE SHELTER kilom etr es HILL HACKNEY 117 KT 121 KT 542 KS 116 KT MAGNETS- VLAKTE CLAPHAM 541 KS K E 118 KT TWYFE- O DINGAANS- LAAR FERN DSJATE SH 25 O KOP T GROOTHOEK KLOOF 119 KT 25 O 543 KS 249 KT AAR 256 KT 539 KS N 250 K IN Bushveld Complex W DRIEKOP Republic of South Africa 253 KT Amplats Mines N DE KOM Impala Mines - Gencor ZWEM- 252 KT Lonrho Mines PP RUST KLOOF 283 KT Goldfields Mines - Northam LEBOWA MOOIHOEK MAANDAGSHOEK 255 KT Po tg i e t e rs ru s t GROOT- GARA- 254 KT VYGEBOOM TOUW 284 KT RPM. AMANDELBULT 282 KT LIMPOPO Modikwa NORTHAM PROVINCE GENOKAKOP HENDRIKSPLAATS RPM. UNION 285 KT 281 KT Warmbaths Barplats KennedysVale HOOGSTE- HOEPA- ONVERWACHT M PUM ALANG A PUNT KRANZ 292 KT 290 KT WESTERN AND Lydenburg 291 KT EASTERN PLATS BAFOKENG BARPLATS DOORNBOSCH CROCODIL E RIVER HOUTBOSCH 294 KT IMPALA 323 KT EASTERN LIMB RPM. RUSTENBURG WINTERVELD PRETORIA 293 KT Rustenbu rg NOOIT- Witb ank VERWACHT 3 000m 324 KT EERSTE GELUK 322 KT B U S H V E L D C O M P L E X 2 000m UG 2 1 000m Merens ky Re ef MODIKWA LEASE AREA Current = Polokwane Potgietersrust Mokopane LeLebobowwaa TwTwickickeenhanhamm ModikwModikwaa SteeSteelpoortlpoort FaultFault DwDwarsriarsrivviieerr DeDerr BBrochrocheenn UG2 MModiodikwkwaa Merensky DRIEKOP 253 KT Platinum Platinum MAANDAGSHOEK 254 KT MiMinnee North Shaft MODIKWA PLATINUM _^ MINE HENDRIKSPLAATS 281 KT South Shaft Onver wacht Hill (adits) _^ ONVERWACHT_^ 292 KT WINTERVELD 293 KT N 02.5 Kilometres KKeeyy PPaarraamemetteersrs n Mining authorisation covers the farms Driekop, Maandagshoek, Hendriksplaats, Onverwacht & Winterveld n First phase comprises 2 decline shaft systems on Onverwacht and Hendriksplaats + adit system on Onverwacht Hill n Production on steady state – 200 ktm, 162 koz Pt/annum n 2 100 employees n Budget – R1,8 billion (real 2003 terms) n Plant commissioned – August 2002 n Full production – 2004 MModiodikwkwaa ((JanJan 2002)2002) MModiodikwkwaa ((JanJan 2003)2003) JJooiinntt VVeentntururee SECT 21 CO. SECT 21 CO. Other ARM Platinum MATIMATJATJI MAMPUDIMA Participants 60% 40% 50% 50% Anglo ARM Mining Platinum Consortium Modikwa Platinum Mine JJVV MMaananaggeemmeentnt SSttrruuccttururee Policy decisions EXCO Equal number of members appointed from EXCO ARM and Anglo Platinum Chairperson - P Motsepe Technical decisions STSTEEREERIINNGG CCOOMMMMIITTTTEEEE Members with requisite skills appointed by the EXCO’s of ARM and Anglo Platinum Operational decisions OPOPEERRAATTIONIONAALL CCOOMMMMITITTTEEEE On mine operational team MMaananaggeemmeentnt TTeeaamm n Business Leader – M Jooste n Area Leader North – M da Costa n Area Leader South – G Strong n Area Leader Process – R McGregor n Area Leader Info & Financial – E Cilliers n SHE Leader – F Veltman n Area Leader Logistics – A Olivier n Area Leader ERM – B van Rhyn n Other : HR, Training, IR, Community BBasiasicc LayLayoouutt ofof DDeclecliinnee SShhafafttss n Trackless material decline (5m x 5m) n Conveyor decline (4,5m x 4m) n Chairlift decline (4m x 4m) n Four production levels and a RAW n Levels accessed by means of ramps from the material decline n Main drives developed on reef DDeclecliinnee SShhafaftt LayLayoouutt 2 X UC S hafts DROPRAISE 1 X DC Shafts RAIS EBORE AIRLOCKS RAW LEVEL 1 LEVEL 2 LEVEL 3 LEVEL 4 Declines and Drives n Developed using mechanised equipment n Equipment: z Axera D06 Drill Rigs z Axera D06 Roofbolters z Toro 1250 LHD’s z Toro D50 Dump Trucks z Fermel Utility Vehicles Twin Boom Drill Rig Roof Bolter 12.5 ton Load Haul Dumper 50 ton Dump Truck 50 Equipment Maintenance n Tamrock contract in place n Workshops on site n SAP Planned Maintenance system Winzes n Mechanised development using low profile machines n Equipment: n Axera LP Drill Rigs n EJC 115 Lhd’s n Where reef dips exceed 15° winzing is done conventionally Raising and Stoping Raising : n Conventional raising with handheld machines Stoping : n Down-dip panels ± 28m face length n Conventional stoping n Handheld machines n Scraper cleaning n Blasting with Anfex and shocktube e e s s i i ra ra ef ef e e R R ay b ck Mu e Reef driv Stope panel Stope panel Direction of stoping Direction of stoping e is a 55 kW winch r eef R Str ike pi llar Muck bay Str ike pi llar 50 ton Dump Truck 12.5 ton LHD R eef d rive r a ill p ip D Some Design Criteria n Two shaft systems – approx. 3,2km’s apart - One material and one conveyor shaft - Chairlift decline added later - Hillside adit mining n 200 000 ton per month concentrator - Natural fines circuit - Autogenous / ROM ball milling - Chrome silica circuit n Central infrastructure - Offices and training facility Some Design Criteria n Conventional stoping - Raises - Down dip stoping - Handheld drills n High productivity mine: - Continuous operations - Two panel cycle - No night shift on the reef plane - Concentrator has high level of process control GEGEOLOLOGYOGY aandnd EXPLEXPLOORRAATTIIOONN Geology n Lithological setting and optimal stope cut n Geological model and mine design optimisation n Exploration drilling programme Eastern Bushveld : Stratigraphic column in proximity of UG2 at Modikwe HW Triplet 3 12cm Triplet 2 12cm 15m UG 3A Triplet 1 5cm 10m UG 3 TR C - L E G E N D - NORITE SPOTTED ANORTHOSIT E Stoping MOTTLED ANORTHOSITE 58cm UG2 PYROXENITE 0 UG 2 Profile Channel PORPHYRITIC PYROXENITE PEGMAT OIDAL PYRO XENITE HARTBURGITE BRC CHROMITITE STRINGER CHROMITITE FW 15 to 17cm 70cm 91m UG 1 Optimal Stoping Cut (per shaft area) 4 Leuconorite Unit 17 10 5 50 10 8 21 30 25 7 8 TRC 8 3 4 129 RGSW= 97 112 RGSW = 91 102 RGSW = 91 UG2 58 (Champion cut) 61 (Champion cut) 56 (Champion cut) 113 97 101 AVE AVE AVE BRC 10 10 10 20 -45 21 21 21 NORTH MINE SOUTH M INE HILL M INE * RGSW= Recommended Geological Stoping Width Geological Model – North Mine Geological Model – South Mine Geological Model – Hill Operations Mine Design Optimisation n Structural features including slumps, potholes, shear zones/faults, undulating reef, and pegmatite replacement bodies although challenging are being successfully addressed n An increased drilling density is enabling optimal positioning of drives and access ramps. n Dip drives are in place to fit optimal raise backs n The base of the regolith / UG2 interference line is determined ahead of mining Mine Design Optimisation n Groundwater modeling and management is in place. Surface appears dry – small secondary aquifers do exist - dewatering programme in place n Geological logging and modelling is in place and assists in optimal cut selection Exploration Drilling Programme Planned drilling for 2003 : n Surface drilling 24 600 m n Underground drilling 14 600 m n Total 39 200 m n Density matched to achieve optimal mine design Training and Development “Create One Mine One Culture” Behavioural Department Goal: To develop every employee to his / her full potential. This will ensure world- class performance with world-class safety record Areas of Focus: n Self Mastery (Focus on Personal Qualities) n Team Mastery (Focus on Team Qualities) n Business Mastery (Focus on Business Principles) n Behavioural Safety (Focus on Critical Safe Behaviour) Behavioural Process – Methods n Behavioural and leadership training n Theatre and video’s (A visual training program) n Experiential training business program (Comprehensive business training program) n Assessment program (Alignment with MQA and introduction of Modikwa assessment training program) n Behavioural safety interventions and programs n Analysis and continuous involvement Socio-Economic Development n Employment equity status n SME and HDSA implementation and progress n Socio- Economic Development (SED) and local community involvement Employment Equity AO 1 AND ABOVE LEVEL Male Female Male Female Male Female Male Female E3 1 1 1 0.0% SE1 1 1 6 6 7 14.3% MP2 2 2 10 10 12 17.0% MP1 6 6 1 1 23 2 25 32 28.0% SS2 11 1 12 1 1 79 3 82 95 17.0% SS1 617 6511 18 67.0% AO2 21 2 23 2 2 55 3 58 83 48.0% AO1 67 5 72 1 1 29 1 30 10 3 7 2 .0 % 114 9 12 3 314 1 1 209 14 223 351 41.0% SME and HDSA Implementation % of contract awarded to HDSA’s : n Transporting of concentrate : 75% n Transporting of ore : 40% n Hostel administration and catering : 100% n Construction of concrete slabs for mobile offices : 100% n Building of 3 vendor training houses : 100% n Construction of security access gates : 100% Socio-Economic Development M Jooste Business Leader N Nonyane H Grobler Socio Economic Leader GM Sect 21 Co’s Business SED Community Development Officer Communications / media Officer Community Community Liaison team Liaison team AACCHHIIEVEMEVEMENENTTSS Modikwe Safety Summary Date Achievement Section 27-Oct-01 1 000 000 LTI Free Hours Modikwa 19-Jan-02 1 000 000 LTI Free Hours Central Logistics 10-Feb-02 1000 Fatality Free Production Shifts Modikwa 10-Feb-02 1000 Fatality Free Production Shifts Central Log 23-Mar-02 1000 Fatality Free Production Shifts North Shaft 23-Mar-02 1000 Fatality Free Production Shifts South Shaft 30-Mar-02