Overview - Impala Platinum, accounting for around 60% of Implats' total production and approximately three quarters of net profit, consists of mining operations, mineral processing (comprising the concentrating and smelting plants), and refineries (which includes both the base metal and precious metal refineries) all located near the west limb of the Bushveld Complex, South Africa.

In 2006, Impala delivered a record 1.125 million ounces of platinum

Keywords   South Africa   platinum   underground

Impala Platinum's mining operation includes 13 operating shafts, five decline shafts (two of which are in development) and two new vertical shafts, on which development recently began. A plan has been developed to maintain production at between 1.1 and 1.2 million platinum ounces annually for 30 years.

Ownership Summary  Name: Impala Platinum Holdings Limited (Implats)    Interest: 100%    Note: public Reference: June 30, 2006

Impala Platinum mines approximately 16 million tonnes of ore each year and in 2006 delivered a record 1.125 million ounces of platinum and 2.0 million ounces of PGMs including Palladium (25%), Ruthenium (8.1%), Rhodium (4.5%), Gold (3.7%), and Iridium (1.8%).

Location - Located in South Africa, Impala Platinum, Implats' primary operation, comprises the mining and mineral processing operations situated on the western limb of the world-renowned Bushveld Complex, north of Rustenburg in North West Province, as well as the refining operation located in Springs, east of Johannesburg, in Gauteng. The refineries incorporate a base and a precious metals refinery.

The Bushveld Igneous Complex contains some of the richest ore deposits on Earth and covers over 66,000 square kilometres, an area the size of Ireland.

Location Summary Nearest Landmark: RUSTENBURG Distance from Landmark: 14km Direction from Landmark: NNW Latitude: 25 deg 33 min S Longitude: 27 deg 11 min E Satellite Image: <click to view>

Impala Platinum's mining operation includes 13 operating shafts, five decline shafts (two of which are in development) and two new vertical shafts, on which development recently began. A plan has been developed to maintain production at between 1.1 and 1.2 million platinum ounces annually for 30 years.

Property - The Impala Mine is situated on the west limb of the world renowned Bushveld Complex, near Rustenburg in South Africa. The Complex is an extremely large (66,000 square kilometres), 2 billion year-old, layered igneous intrusion occurring within the boundaries of South Africa.

Contained within a well-layered ultramafic to mafic succession called the Rustenburg Layered Suite are two horizons which host economically exploitable quantities of PGMs, namely the Merensky Reef and the underlying UG2 Chromitite Layer. Both the Merensky Reef and UG2 Chromitite Layer are present throughout the lease area and sub-outcrop on the property dipping approximately 9 to 10 degrees north-east towards the centre of the Complex.

Reserves Summary Name: Impala Platinum Commodity: platinum Class: Proven + Probable Tonnage: 246 Mtonnes Grade: 4.88 g/t Note: 5 PGE & Au Reference: June 30, 2006

These two economic horizons can be traced for hundreds of kilometres around the complex and are the focus of Implats' operations in which the PGMs platinum, palladium, rhodium, ruthenium and iridium are recovered together with quantities of gold, nickel, copper and cobalt.

Deposit Summary Deposit Type: ultramafic reef Primary Commodity: platinum

Platinum was discovered in the Bushveld Complex in 1924, by Hans Merensky, however production on the Merensky reef and UG2 Chromite layer didn't begin until 1969, and 1980 respectfully. By the early 1990’s Impala had become a 1 million platinum ounce producer.

Operation - Operations at Impala Platinum, the largest single mining entity of its kind in the world, comprise 13 operational shaft systems covering an area of 260km². Mining currently extends to a depth of around 1,000 m, with most operations occurring at an average depth of 650 m. The mining width, including dilution, for Merensky Reef is typically about 1 metre, whilst that for UG2 is about 0.9 metres.

Each shaft develops and mines about 8km². In FY2006 Impala mined around 16,441 million tonnes of ore, yielding 1.125 million ounces of platinum. Plans are in place to maintain these production levels for the next 30 years.

At present, three decline shafts are in full production with development of the remaining two decline projects (11 and 14 shafts) nearing completion. The construction of two new shafts (16 and 20 shafts) was approved in September 2004. At full production these two shafts will together produce 355,000 ounces of platinum annually. 20 shaft is scheduled to come into production in 2009 and 16 shaft in 2012.

Mine Production Summary  Mine - Impala Platinum    Capacity: 16.44 Mtonnes/y    Rate: 16.44 Mtonnes/y Reference: Dec 31, 2006

Two new technologies are currently being implemented at the Impala Mine- the drill jig, referred to as dynamic drilling technology (DDT), and extra low-profile trackless mining vehicles (mechanised mining). The maximum proportion of ore that can be mined using mechanised methods is 14%.

Process - Impala is committed to maintaining a leading edge in its metallurgical operations. Significant capital expenditure programs have been undertaken to ensure sufficient capacity to meet the Group's strategy to deliver 2.3 million ounces of platinum by 2010.

At the Mineral Processes plant, the concentrator consists of 30 run-of-mine semi-autogeneous mills. The operation's key focus in recent years has been on improving concentrator recoveries which now stand at a record 84.5%. The smelter operates two immersed 37MW arc electric furnaces. In March 2006 an upgrade to the No. 4 Furnace was approved.

Processing Summary  Facility - Impala Platinum    Capacity: 16.44 Mtonnes    Rate: 16.44 Mtonnes/y  Product    Commodity: Platinum    Quantity: 1.125 Moz    Cost: 21.21 US$/g Reference: Dec 31, 2006

This project is in line with expansions at Impala's refineries in Springs. Expansion of the Precious Metals Refinery (PMR) from 2.0 to 2.3 million ounces of platinum by 2008 has been approved and a feasibility study to increase the Base Metals Refinery's (BMR) capacity from 2.0 to 2.3 million ounces is currently underway. Conceptual studies have also been initiated to increase capacity at both refineries, initially to 2.5 and subsequently to 2.8 million ounces of platinum per annum.

Environment and Community - In the past 15 years, Impala Platinum has transformed itself from one of the highest to one of the lowest cost primary platinum group metals (PGM) producers in the world. In the process, it has achieved the best productivity and safety statistics of all South African hard-rock mining operations.

Impala is committed to the transformation of the mining industry and believes that it is a strategic imperative for future sustainability. The operation has used the Mineral and Petroleum Resources Development Act (MPRDA), Mining Charter, Mining Scorecard and Codes of Good Practice as guidelines to ensure a holistic approach. The result is a proactive strategy designed to ensure that genuine transformation is achieved, notably in terms of ownership, management, skills development, employment equity, procurement, housing and rural development.