Rustenburg Section

Equivalent refined platinum production of 839 400 ounces was 25 300 ounces or 2,9% lower than in 2004. The ore source mix continued to change with the ongoing replacement of Merensky ore with UG2 ore, as the currently available Merensky reserves diminish. A drive to secure and sustain a sizeable component of deeper but higher value Merensky production is a fundamental part of the Rustenburg strategy and planning in the capital programme for down-dip vertical shaft access is well advanced. Operating performance in the second half of the year improved over the first half as the considerable efforts made to restore production and improve safety and efficiencies at the constituent shafts started to take hold. In 2004, the Rustenburg UG2 Project production volumes increased steadily with additional UG2 output from the Townlands and Paadekraal shafts making the biggest contribution. An increase in volumes, combined with an improved grade, led to an increase in equivalent refined platinum (ERP) production from 255,000 ounces in 2003 to 318,900 ounces in 2004. The proportion of UG2 production, as a percentage of tons milled, increased from 43% in 2003 to 49% in 2004. In 2003, replacement of Merensky with UG2 production continued within the year. The Rustenburg UG2 Project achieved a 51% increase in tons milled and equivalent refined platinum ounces increased by 58% owing to higher tons at an improved grade at the Waterval Mine. In 2002, production declined principally as a result of the incorporation of the Brakspruit, Bleskop and Paardekraal shafts in the Rustenburg UG2 Phase 1 project. The UG2 Phase 1 project consists of a 400 000 tons per month concentrator processing ore from the new Waterval mine as well as the Brakspruit, Bleskop and Paardekraal shafts. Operations commenced in February 2002. In the half-year ended Jun/02, the UG2 expansions commissioned in 2000, resulted in increased production at the Amandebult UG2 and Waterval UG2 projects. The new converting process project entered its commissioning phase. In 2001, the Union Section, in spite of higher tonnages, experienced a drop in grades and recoveries that affected its overall performance. The fully mechanised Waterval mine is planned to reach full production in 2002 and the new dedicated UG2 plant will start commissioning during the first quarter of 2002. There will be a gradual decline in Merensky output over the next few years and the UG2 programme, whilst allowing Rustenburg Section to expand its overall production, will also replace the slowly dwindling Merensky reserve. The Amandelbult Section, compared to the previous year, increased total tons milled by 10.5% head grade by 2.2% and refined platinum by 19.0%. Concentrator recoveries also improved during the year. The Styldrift (BRPM Expansion), forecast to produce 230,000 milled tons per month and 250,000 ounces of platinum per year was progressing. Preliminary design and project engineering work has progressed well, including a 3D seismic survey and scoping studies for the Environmental Management Programme Report (EMPR) and mine access design.

Metso Minerals has recently delivered eight SPVG froth pumps to Anglo Platinum's Union Section Mines, Mortimer Concentrator for underground mine dewatering; a further order for 18 pumps from the company's Rustenburg platinum mines has also been awarded.

Mineweb reports that Anglo Platinum has confirmed plans to expand its Rustenburg UG2 project at a cost of USD370 million in an arrangement that shows the importance of establishing empowerment credentials as early as possible. The world's largest platinum producer said the expansion would produce 306,000 ounces of refined platinum and 167,000 ounces of palladium a year.