BAFOKENG RASIMONE

Poor geological conditions at South Shaft hindered mining. While milled tonnage increased, grade deteriorated with the processing of low-grade surface material. Refined production increased by 10.8% compared to the first half of last year but was below plan. Also in 2001, Bafokeng-Rasimone experienced a difficult year. The development of underground operations had fallen behind as a result of flooding in 2000. In addition, difficult geological conditions were encountered. To ameliorate the impact of lower production from underground operations, opencast mining was extended and a new Merensky decline section with a life of three years has been developed. A programme to accelerate ore reserve availability is continuing. In 2001, milled tons rose 23.4%, compared to 2000, but continue to be lower than desired. This can be ascribed to the slow ore reserve build-up associated with the complex geological nature of the ore-body (intersections of iron replacement and rolling reef), particularly at North Shaft.

Platinum giants, Anglo American Platinum Corp (AngloPlats) and Impala Platinum Holdings (Implats) are planning to do battle over the South African platinum project that forms a vital cog in the wheel of AngloPlats' expansion plan. The dispute concerns the Styldrift deposit, which will form part of AngloPlat's plan to expand its Bafokeng Rasimone mine.

Anglo American Platinum has reported net earnings of US$515.0 million on revenues of US$1.251 billion for the six-months ended June 30, 2001, compared to US$413.9 million on revenues of US$1.084 billion over the same period last year. Refined platinum production increased by 14.8% to 1 million ounces in the half ended June 30, 2001. Palladium and rhodium production also increased.