Anglo American Plc · LSE:AAL
Anglo American — Anglo Platinum — Corporate Update (November 2002)
29 slides from Anglo American's corporate update, Nov 28, 2002
Slide 1: Production Profile 2003-2006
World Leader in Platinum Expansion : November 2002 PRODUCTION PROFILE 2003 - 2006 Anglo Platinum 28 November 2002
Slide 2: Supply/demand review supports growth target of 3.5 million ounces
World Leader in Platinum Expansion : November 2002 Supply / demand review supports Anglo Platinum’s growth target to produce at a rate of 3,5 million ounces of refined platinum by end 2006 Targets remain achievable
Slide 3: Brief PGM Market Outlook
World Leader in Platinum Expansion : November 2002 BRIEF PGM MARKET OUTLOOK Platinum demand to grow strongly - Autocatalysts, primarily diesel (short term) - Jewellery (medium term) - Electronics & fuel cells (long term) Palladium demand to remain at current levels Rhodium demand expected to grow Pl
Slide 4: Agreement with Government
World Leader in Platinum Expansion : November 2002 AGREEMENT WITH GOVERNMENT
Slide 5: Mining Authorisations
World Leader in Platinum Expansion : November 2002 MINING AUTHORISATIONS 6 key mining authorisation applications Court action on 2 - these authorisations now processed 2 further authorisations - process agreed Agreement reached on key 2 - Twickenham & Der Brochen
Slide 6: Agreement with Government
World Leader in Platinum Expansion : November 2002 AGREEMENT WITH GOVERNMENT BEE groupings holding mineral rights adjacent to each project area will contribute those rights to the project. Within each project area a 50:50 JV will be established over portion of the area. The remainder of the project
Slide 7: Agreement with Government
World Leader in Platinum Expansion : November 2002 AGREEMENT WITH GOVERNMENT The BEE groupings will contribute rights plus 50% of the capital and operating expenditure on the JV project. Anglo Platinum received “credit” for excess ounces (depth adjusted) contributed. As a result of this credit Anglo
Slide 8: Agreement with Government
World Leader in Platinum Expansion : November 2002 AGREEMENT WITH GOVERNMENT Negotiations with two BEE consortiums have commenced: - Paschaskraal JV adjacent to the Twickenham project - Booysendal JV adjacent to the Der Brochen project JV mine designs, planned production rates, capital costs and fun
Slide 9: Bushveld Complex Eastern Limb
World Leader in Platinum Expansion : November 2002 BUSHVELD COMPLEX EASTERN LIMB Paschaskraal JV Booysensdal JV
Slide 10: Paschaskraal JV & Twickenham Projects
World Leader in Platinum Expansion : November 2002 PASCHASKRAAL JV & TWICKENHAM PROJECTS MIDDELPUNT 420 KS ZWARTKOPPIES 413 KS WISMAR 96 KT UMKOANESSTAD 419 KS 97 KT LEBOWA PLATINUM MINE BRAKFONTEIN 464 KS Merensky SCHOONOORD 462 KS WATERKOP 113 KT KLIPFONTEIN 465 KS HIMALAYA 463 KS UG2 MECKLENBURG
Slide 11: Booysendal JV & Der Brochen Projects
World Leader in Platinum Expansion : November 2002 BOOYSENDAL JV UG2 & DER BROCHEN RICHMOND 370 KT Merensky Der Brochen Project 100% Anglo Platinum ST GEORGE 2 JT HELENA 6 JT PROJECTS HERMANSDAL 3 JT DER BROCHEN 7 JT HEBRON 5 JT JOHANNESBURG 45 JT BOOYSENDAL 43 JT PIETERSBURG 44 JT Booysendal UYSEDO
Slide 12: Impact on Expansion
World Leader in Platinum Expansion : November 2002 IMPACT ON EXPANSION Delays associated with mining authorisations and JV negotiations have impacted on the rate of build-up to 3,5 million ounces per annum. A revised project suite has mitigated the impact but reduced the rate of production increase
Slide 13: Production Profile
World Leader in Platinum Expansion : November 2002 PRODUCTION PROFILE
Slide 14: Projects: Current Status
World Leader in Platinum Expansion : November 2002 PROJECTS: CURRENT STATUS Safety: LTIFR: 0,2 Waterval concentrator commissioned on schedule - exceeding design targets. Waterval mine into production - ramping up Modikwa Mine into production - very positive performance Modikwa plant commissioned - m
Slide 15: Production Profile
World Leader in Platinum Expansion : November 2002 PRODUCTION PROFILE Pt Oz (000’s) CAPEX (R m) Total AP** 2003 to completion 2002 Base Production 2 250 2 242 Real 2003 terms Increase over 2002 Base BRPM 72 36 - Modikwa 146 73 120 RPM UG2 Ph 1 246 246 210 Twickenham 160 160 3 000 RPM Tailings 140 14
Slide 16: Production Forecast
World Leader in Platinum Expansion : November 2002 PRODUCTION FORECAST 3500 3000 Production 2500 (Pt oz (000’s) 2000 Full margin Refining margin 1500 only 1000 2002 2003 2004 2005 2006 BRPM Modikwa RPM UG2 Ph 1 Twickenham Build up Duration RPM Tailings JV’s & other 2002 2003 2004 2005 2006 2007 2008
Slide 17: Costs, Capex & Production
World Leader in Platinum Expansion : November 2002 COSTS CAPEX & PRODUCTION In the short term costs of labour and safety are increasing at rates well above inflation. That and the change in mix of ores will put pressure on costs. We are targeting unit cash operating costs on steady state operations
Slide 18: Key Issues
World Leader in Platinum Expansion : November 2002 KEY ISSUES Regulatory approvals - mining licences - EMPR’s Time to conclude negotiations. Suppliers meeting delivery commitments. Project programme consistently reviewed and reported at financial results presentations
Slide 19: Capital Expenditure
World Leader in Platinum Expansion : November 2002 CAPITAL EXPENDITURE ORIGINAL ANNOUNCEMENT REVISITED (Rbn) Original announcement in 2003 terms 17,1 Scope changes (incl time delays) 2,2 Capacity projects for growth and / 2,0 or replenishment beyond 2006 Revised total (2003 terms) 21,3
Slide 20: Project Changes Summary
World Leader in Platinum Expansion : November 2002 PROJECT CHANGES SUMMARY Revised suite of projects and scope changes Certain projects still in ramp up phase by 2006 Ability to grow beyond 2006 provides significant flexibility
Slide 21: Rustenburg Platinum Mines Limited Tailings Retreatment Project
World Leader in Platinum Expansion : November 2002 RUSTENBURG PLATINUM MINES LIMITED TAILINGS RETREATMENT PROJECT
Slide 22: RPM Tailings Retreatment
World Leader in Platinum Expansion : November 2002 RPM TAILINGS RETREATMENT Project details - Production per annum: 120 000 oz Pt and 38 000 oz Pd - Volume per month: 450 000 / 900 000 tons - Average grade 1 g/t - Capex: R1,6 billion - First production 2004, full production 2006 - 15 year project li
Slide 23: RPM Tailings Dam Sites
World Leader in Platinum Expansion : November 2002 RPM TAILINGS DAM SITES Waterval tailings dam Turfontein S LU RRY shaft /M ON I PIP TORIN ELI N E G WA TE R Proposed Hoedspruit tailings dam Waterval Mine RETUR N WAT ER LIN E Brakspruit shaft Proposed Concentrator Plant Klipfontein tailings dam
Slide 24: RPM Tailings Retreatment
World Leader in Platinum Expansion : November 2002 RPM TAILINGS RETREATMENT Drilling programme complete Plant design complete Large bore auger drilling
Slide 25: Tailings Plant Design
World Leader in Platinum Expansion : November 2002 TAILINGS PLANT DESIGN
Slide 26: Questions
World Leader in Platinum Expansion : November 2002 QUESTIONS
Slide 27: Production Profile 2003-2006 Annexure
World Leader in Platinum Expansion : November 2002 PRODUCTION PROFILE 2003 - 2006 ANNEXURE 28 November 2002
Slide 28: Project Comparison & Changes
World Leader in Platinum Expansion : November 2002 PROJECT COMPARISON & CHANGES 2000/1 Announcements Current Estimate Projects Pt Oz Capex to 2006 (Rm) Pt Oz Capex to 2006 ( 000’s) in 2003 terms** ( 000’s) R m 2003 terms BRPM 250 1 400 235 1 400 AM, LEB, UN * 201 1 100 - - Modikwa 162 1 800 162 1 80
Slide 29: Production Profile 2003-2006
World Leader in Platinum Expansion : November 2002 PRODUCTION PROFILE 2003 - 2006 Anglo Platinum 28 November 2002