Impala Platinum Holdings Limited · JSE:IMP
Impala Platinum — Corporate Update (October 2004)
31 slides from Impala Platinum's corporate update, Oct 5, 2004
Slide 1: Marula Platinum Analyst Visit
MARULA PLATINUM Analyst Visit – Tuesday, 5 October 2004 Agenda • Introduction • Geology • Mining • Mineral Processing • Safety • Environment • Infrastructure • Social Involvement 2 1
Slide 2: Introduction and location map
INTRODUCTION 3 Location map 4 2
Slide 3: Background and capital cost
Background • Acquired all assets of Platexco Twickenham (Winnaarshoek) – R950 million in Dec 2000 Exchanged Hendriksplaats for Forest Hill • Hackney Clapham R37 Clapham and portion of Forest Hill Road Winnaarshoek • Sublease of portion of Driekop Driekop • 20% Black Economic Maandagshoek Empowerment
Slide 4: The owners of Marula Platinum and project programme
The owners of Marula Platinum Owner % Role Implats 80 Technical, managerial, financial and operational support and expertise. Reputation allows capital to be raised for Marula Platinum and BEE owners Mmakau 10 BEE with proven sustainability and mining Mining expertise. Will have strategic input into
Slide 5: Geology
GEOLOGY 9 Geology Generalised section of geology Merensky Reef 400m UG2 Reef Dyke 10 5
Slide 6: Dip variation plan and UG2 horizon
Dip variation plan • Depicts structural interpretation • Dip steeper in shallow/slump area • Ave 13 degrees • Detailed variability influenced by borehole density • Variability expected in “clean areas” 11 UG2 horizon UG2 Pyroxenite UL2 50 cm UL1 UG2 Main 60 cm Chrome UG2 20 cm Pegmatoid 12 6
Slide 7: Marula UG2 PGE splits; reserves and resources
Marula UG2 – PGE splits Au Ir 1% 3% Ru 11% Pt 37% Rh 8% Pd 40% 13 Reserves and resources • Mineral Reserve : UG2 41.3 Mt • Mineral Resource: Merensky and UG2 66.6 Mt • Phase 1 UG2 Reef (Merensky mined at a later stage) • Evaluation drilling continuing on Merensky 14 7
Slide 8: Mining: mine plan phase one
MINING 15 Mine plan – phase one • Original mining based on trackless Bord and Pillar • Two decline accesses ¾ Clapham ¾ Driekop • Mine UG2 to a depth of 600 metres • 233 000 ROM tonnes per month (103 000 oz Pt per annum) • Infrastructure designed on a modular basis to facilitate future expansion • L
Slide 9: Typical bord-and-pillar method stope layout
Typical bord-and-pillar method 17 Stope layout Original layout 14m 1.6m Dip @ 9° Dip @ +18° Typical 3.1m Waste Dip @ 5° 18 9
Slide 10: Effect of reef dip on dilution; revised mine plan
Effect of reef dip on dilution Reef Dip vs Additional % Dilution (Bord and Pillar layout) 70% 60% % Additional Dilution 50% 40% 30% 20% 10% 0% 10 12 14 16 18 20 22 24 26 Dip (degrees) 19 Revised mine plan • Dips • High dilution • Poor equipment efficiencies • Poor extraction rates at depth ¾ 65% at
Slide 11: Semi-mechanised layout
Semi-mechanised layout 21 Semi-mechanised layout Panel 1 Drive 1 Drive 2 Panel 2 Typical section showing Trackless drive with conventional panel 22 11
Slide 12: Breast mining layout; mining methods evaluated
Breast mining layout 23 Mining methods evaluated • Bord and pillar (1.6 or 1.8m) • Semi-mechanised (3 or 2 shifts) • On Reef Breast • On Reef Dip • Off Reef Breast (conveyors or trucks) • Off Reef Dip(conveyors or trucks) 24 12
Slide 13: Grade and cost per tonne comparison
Grade comparison 6.00 5.02 5.02 5.00 4.00 3.83 3.76 3.38 g/t 3.00 2.00 1.00 0.00 Off Reef Breast Single Off Reef Breast Single Semi Mechanised Bord and pillar 1.8 Bord and pillar 1.6 Conveyor truck Mining methods 25 Cost per tonne comparison 180 160 162 160 148 140 129 129 120 Rand per tonne 100 80
Slide 14: Cost per ounce comparison; mining method selected
Cost per ounce comparison 1,600 1,400 1,369 1,292 1,231 1,200 1,067 1,078 Rand per ounce 1,000 800 600 400 200 0 Off Reef Breast Single Off Reef Breast Single Semi Mechanised Bord and pillar 1.8 Bord and pillar 1.6 Conveyor truck Mining methods 27 Mining method selected - conclusion • Conventional b
Slide 15: The way forward; best practice
The way forward • Transitional phase to full production • Detailed design work in progress • Initiated footwall development • EPCM contract to manage process • Maintain ounce profile from current workings • Maximise semi-mechanised operations • Opportunities for breast mining on-reef 29 Best practic
Slide 16: DDT drill jigs objectives; in-stope support drilling
DDT drill jigs - objectives • To reduce the physical effort • Improved safety through face support in the form of roof-bolts • Improving the quality of drilling • Improving the face advance • Improved hanging wall control 31 Support drilling in-stope 32 16
Slide 17: Hydrabolt installed support
Hydrabolt 33 Installed hydrabolt support 34 17
Slide 18: Pre-stressed stick support; production output
Pre-stressed stick support JACKPOT 35 Production output • Panel length 24,0m • Face advance 22,0m • Square meters/panel 528 m² • Labour required 11 RDO 4 Winch operator 2 TBR/support 2 LHD 1 Miner assistant 1 PTV 1 • Efficiency 48 m²/man 36 18
Slide 19: Mineral processing overview
MINERAL PROCESSING 37 Mineral processing overview • Design based on Mintek test work data • Overall metallurgical recovery set at 82% of ROM grades (after mine call factor and scalping) • Designed on a modular basis to facilitate future expansion • Final concentrate transported to Mineral Processes
Slide 20: Commissioning dates; tonnage profile
Commissioning dates • Plant commissioned March 2004 • Plant operating as per design expectations • Completed on time and below budget • DMS plant by-passed 39 Tonnage profile 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 40 20
Slide 21: Ounces profile; tonnes milled
Ounces profile 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 - 41 Tonnes milled 350 300 250 200 150 100 50 0 Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 YTD B/Plan 74 71 81 87 102 105 226 Actual 120 88 84 292 42 21
Slide 22: PGM % recovery; Safety
PGM % recovery 95 90 85 80 75 70 Aug- Sep- Jul-04 Oct-04 Nov-04 Dec-04 YTD 04 04 B/Plan 79 79 80 81 80 80 79 Actual 92 93 91 92 43 SAFETY 44 22
Slide 23: Safety statistics and initiatives
Safety statistics Lost Time Injury Frequency Rate 3,87 4 3.5 3 2,43 2.5 2 1.5 1 0.5 0 FY04 FY05 45 Safety initiatives • 5 Platinum rules established • Implemented the Meerkat system • Training Centre underground to train workers in working environment • Road safety awareness through propoganda and p
Slide 24: Environment
ENVIRONMENT 47 Environment • Water permit application submitted • Sewerage plant in full operation • Water treatment plant in full operation • Slimes dam operational • Water Management Committee established • Ground water monitoring with SRK 48 24
Slide 25: Infrastructure
INFRASTRUCTURE 49 Infrastructure • Bulk water supply • Power supply • Bio-filter sewage treatment works • Central offices, workshops, ablutions, training facilities and clinic • Offices, change house and lamp room at each shaft 50 25
Slide 26: Lebalelo raw water dam; Eskom power
Lebalelo raw water dam 51 Eskom power 52 26
Slide 27: Social involvement
SOCIAL INVOLVEMENT 53 Hlahlana primary school 54 27
Slide 28: Empowerment model; Marula Community Trust
Empowerment model Elements of empowerment BEE Employment Social/SME Affirmative Training Ownership Equity Development Procurement Mmakau Community Local direct Trust stakeholding 55 Marula Community trust • Trust formed 5 August 2004 after 14 months of negotiations with all stakeholders • R1m cheque
Slide 29: Employment and training
Employment • 50.4% of workforce currently made up of local labour • Committed to the Mining Charter, Social and Labour Plan and Implats’ submission on Employment Equity Act • 10 local miners trained and achieved blasting certificates • 13 local apprentices qualified • 4 local bursary students curren
Slide 30: Social involvement; Mining Charter procurement
Social involvement • Preference to local contractors and suppliers ¾ Building trades ¾ Security ¾ Fencing ¾ Catering ¾ Transport 59 Mining Charter Categories - procurement Black Owned 22% Black Influenced 55% Black Empowered 23% R49m 1 July 03 – 30 June04 60 30
Slide 31: Thank you
THANK YOU 61 31
Impala Platinum Holdings — Corporate Update (October 2004) on 6ix