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					                                      Manganese Investor Day
                                                                    22 May 2008




Port
Elizabeth




                                                                                                   Disclaimer
     This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities
     Act of 1933, as amended, and 21E of the Securities Exchange Act of 1934, as amended, that are intended
     to be covered by the safe harbour created by such sections. All statements other than those of historical
     f     included in hi            i
     facts i l d d i this presentation are f  forward-looking statements i l di
                                                    d l ki                            ih     limitation, (i) estimates of
                                                                          including, without li i i             i       f
     future earnings, and the sensitivity of earnings to commodity prices; (ii) estimates of future commodity
     production and sales, (iii) estimates of future cash costs; (iv) estimates of future cash flows, and the
     sensitivity of cash flows to commodity prices; (v) statements regarding future debt repayments; (vi) estimates
     of future capital expenditures; (vii) estimates of reserves, and statements regarding future exploration results
     and the replacement of reserves. Where the Company expresses or implies an expectation or belief as to
     future events or results, such expectation or belief is expressed in good faith and believed to have a
     reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors,
     which could cause actual results to differ materially from future results expressed, projected or implied by
     such forward-looking statements. Such risks include, but are not limited to, commodity price volatility,
     currency fluctuations, increased production costs and variances in ore grade or recovery rates from those
     assumed in mining plans, as well as political and operational risks in the countries in which we operate and
     governmental regulation and judicial outcomes. The Company does not undertake any obligation to release
     publicly any revisions to any "forward-looking statement" to reflect events or circumstances after the date of
     this presentation, or to reflect the occurrence of unanticipated events, except as may be required under
     applicable securities laws.



                                                                                                                            2




                                                                                                                                1
                                           Table of Contents
                                                Slide number

1. ARM: moving into overdrive                     4

2. Manganese: U
2 M                  d l      h i
              Uses and value chain               13

3. Black Rock Manganese Ore Mining               17

   Operations
4. Cato Ridge Manganese Alloy Operations         32

5. Manganese Market Overview                     39

   •   Manganese Ore market                      44

   •   Manganese Alloy market                    52

6. ARM Ferrous: Manganese                        63




                                                               3




                          Section 1
                   ARM: moving into overdrive




                                                                   4




                                                                       2
                                                      Perfect diversified commodity mix
ARM market capitalisation:
R 58 billion or $ 7.8 billion
ARM share price:
R 280 per share
At 19 May 2008




                                                                                           90%




                                                                                                                              5




                                       Growing diversified commodity business
Attributable EBIT split between operations
     12 months to 30 June 2007                                            6 months to 31 December 2007
                       Iron Ore                                                                     Manganese
                        20.6%                                                                         41.2%
                                           Manganese
  Nkomati*                                   19.3%                      Iron Ore
   20.3%                                     Chrome                       12.6%                                 Chrome
                                              2.6%                                                               5.3%

                                                                                                               Thermal Coal
                                                                          Nkomati*
                                           Thermal Coal                                                           0.3%
                              Platinum                                     13.6%
                                              0.3%
                                              0 3%                                                 Platinum
                            Group Metals                                                         Group Metals
                               37.0%                                                                27.0%

     * Nkomati operating profit split:                                     * Nkomati operating profit split:
        Nickel (86%) and Chrome (14%)                                       Nickel (52%) and Chrome (48%)

    Attributable EBIT split between operations calculated from published EBIT (or segmental results) before corporate and
    exploration expenses and excluding the 45% minority interest in Two Rivers

                                                                                                                              6




                                                                                                                                  3
                                        Long life, quality resource portfolio
                      Life of Mine Years (Based on reserves)
                      Reserves as a % of Resources
        + 30                                                                               90%

            30                                                                             80%

                                                                                           70%
            25
                                                                                           60%
            20
                                                                                           50%
Years




            15                                                                             40%

                                                                                           30%
            10
                                                                                           20%
            5
                                                                                           10%

        -                                                                                  0%
                 Platinum      Nickel     Manganese      Iron Ore    Dwarsrivier   Coal
                                                                    Chrome Ore



                                                                                                           7




                                        ARM track record of project delivery

                               Completed projects                          Projects in progress
                               >R5 bn* 2004 - 2007:                        >R7 bn* 2007 - 2012:

                               - Nchwaning III Manganese                   - Khumani Iron Ore (10 mtpa)

                               - Modikwa Platinum                          - Nkomati Nickel (20.5 ktpa)

                               - Two Rivers Platinum                       - GGV thermal coal (6.7 mtpa)

                               - Nkomati Nickel interim plant              - Both Khumani and GGV have
                                                                              the potential to increase
                               - Nkomati Chrome mine
                                                                              volumes further
                               - Dwarsrivier Chrome



                              * Total attributable capital expenditure

                                                                                                           8




                                                                                                               4
                                                          Cost competitive growth
ARM target for operations on the respective global cost curves by 2012 (steady state)

                Nkomati Chrome                                     Modikwa Platinum
                    Goedgevonden Coal
                             Khumani Iron Ore
                                 Two Rivers Platinum
                                       Nchwaning Manganese
 Commodity
                                              Nkomati Nickel
 unit cash
                                                   XSA Coal
 cost




                             25%                      50%          75%                100%

                           Cumulative production / Percentile on cost curve

                                                                                              9




                                                         Investing in our future




                                                                                             10




                                                                                                  5
                                                                          Manganese ore and alloys
                                                                      forms a significant part of ARM
ARM Headline earnings                                  Assmang Headline earnings Manganese division operating
(Rand million, Attributable)                           (Rand million, 100%)      Profit (Rand Million, 100%)
         % = ARM Ferrous as a percentage of ARM         1500      % = Manganese as a percentage of Assmang            % = Split between Ore mining and Alloy smelting
1500                                                                                                         1500
1250                                                    1250
                                                                                                             1250
1000                                                    1000
                                                                                                             1000                                        42%

 750                                                     750
                                                                                           68%               750
                                                                                                                                         50%
 500                       55%             77%                                                                                                           58%
                                                         500                    43%                          500
                                                                                                                         20%
 250        73%
                                                                                                                                         50%
                                                         250        49%                                      250         80%
    0
                                                           0                                                   0
 -250
                                                                                                                        2006            2007           1H 08
 -500                                                    -250
                                                                                                                    Ore mining              Alloy smelting
           2006            2007          1H 08                     2006        2007       1H 08

                                                                Manganese         Iron Ore
    ARM Ferrous             ARM Platinum
    ARM Coal                Teal                                Chrome
    Corporate


                                                                                                                                                                    11




                                                   ARM exposed to commodities where
                                                   South Africa has top global rankings
 South Africa’s role in world mineral reserves, production and exports (2006)
 The DME’s South African Mineral Industry 2006/2007 report


                                                  Reserve Base                            Production                                   Exports

  Commodity                                        %                Rank                   %                 Rank                 %                  Rank
  PGMs                                            87.7                 1                 59.3                 1                    *                     *
  Manganese Ore                                   80.0                 1                 13.3                 2                 19.7                     2
  Chrome Ore                                      72.4                 1                 38.7                 1                 10.9                     4
  Gold                                            40.1                 1                  11.1                1                    *                     *
  Níckel                                          8.4                  5                  3.1                 9                    *                     *
  Coal                                            6.1                  8                  4.5                 5                  8.4                     4
  Copper                                          1.4                 14                  0.7                 16                   *                     *
  Iron Ore                                        0.9                  9                  2.8                 7                  3.6                     6
  Ferro-Mn/Fe Si-Mn                                *                   *                    6                 4                 16.4                     2

  % = SA as a percentage of world
  Rank = Ranked according to world

                                                                                                                                                                    12




                                                                                                                                                                         6
                           Section 2
                 Manganese: Uses and value chain




                                                                                  13




              Steel demand drives manganese production

Steel         Steel         Mn alloy     Output of
                                                       Mn ore
demand        production    demand by    Mn alloys                   Mn ore
                                                       demand by
by grade,     by grade,     grade,       by grade,                   mining by
                                                       grade and
product,      product,      product,     product,                    region
                                                       type
region        region        region       region



• 90% of global manganese output is used in the production of iron and
  steel
    • Largest other use is in aluminium alloys and batteries
• In the past steelmaking technology advancements has resulted in
  falling unit consumption of manganese
    • Current average consumption is (up to) 9 kg/t (carbon steel)
• But with new high tech steels, consumption is expected to increase for
  special grades of steel (120 kg/t)

                                                                                 14




                                                                                       7
                                    Manganese grade key for steelmaking
 • No real substitutes for manganese exists
 • High grade manganese ore reduces alloy costs because:
       • It facilitates the reduction process in steel making
       • Decreases coke consumption
       • Yields higher grade end product, i.e. alloy and steel products
 • Direct correlation between the grade of manganese ore and alloys
     compared with the productivity of steelmaking
 • Intensity of use: The volume of manganese consumed per unit of
     crude steel production (unit consumption) varies across regions and
     is a major determinant of total demand for the manganese alloys
       • China’s intensity of use remains low by global standards


                                                                                                  15




                                                                     Manganese value chain
ARM Ferrous products are Manganese Ore, High Carbon Ferro Manganese (HC FeMn), Medium
Carbon Ferro Manganese (MC FeMn) and Refined Ferro Manganese


     Product         Mn Ore                SiMn             HC FeMn       MC FeMn   Mn Metal

      Global
  Production           38 mt              7.6 mt              4.4 mt       1.1 mt     1 mt
      (2007)



 Manganese has an important role to play in the steel making process
        •   Increases hardness, toughness, stiffness and wear resistance as an alloying element
        •   Improves tensile strength
        •   Desulphurising agent: combines with and removes sulphur from iron
        •   Assists in producing fluid slag
        •   Deoxidiser
 Manganese: extracted from the Latin word “Magnes”, meaning magnet

                                                                                                  16




                                                                                                       8
                 Section 3
 Black Rock Manganese Ore Mining Operations




                                                                          17




                    Assmang structure


        100%
 100%
ARM Ferrous


           50%                              50%




        IRON ORE         CHROME       MANGANESE


                          100%               100%       100%

                   Nchwaning Mine      Gloria Mine   Cato Ridge Works

                                      50%                      50%
                                    10% Sumitomo
                                                     Cato Ridge Alloys
                                    40% MZK


                                                                         18




                                                                               9
                                               Manganese
                                                                                Ferrous Division
                                                 Division
                                               • Cato Ridge
                            Manganese        Ferromanganese
                               Division           Works
                                                                           Limpopo
                                                                                                       Chrome
                           • Nchwaning &
                                                                                                        Division
                          Gloria Manganese
                                Mines                                                               • Machadodorp
                                                                                                      Ferrochrome
        Iron Ore                                                                                         Works
         Division
                                                               Gauteng
                                                               G t
      • Beeshoek &                                  North West
    Khumani Iron Ore                                     Johannesburg Mpumalanga                       Chrome
          Mines                              Black Rock                                                Division
                                                                                                     • Dwarsrivier
                                Khumani                                                              Chrome Mine
                             Beeshoek             Kimberley   Free State          KwaZulu-Natal

                                                                                               Richard’s Bay
                                                                     Lesotho               Durban
               Northern Cape



                                                              Eastern Cape

                                                                             East London

    Saldanha           Western Cape
                                                          Port Elizabeth
     Cape Town                                                                                                   19




                                  Black Rock overview
•    The company’s manganese mines are located in the Northern Cape province
•    Black Rock is the main administration centre for the manganese ore mines and is
      it t d     kil   t       th   t f Kuruman
     situated 80 kilometres northwest of K
•    The group currently operates three manganese mines:
       •   Gloria
       •   Nchwaning 2
       •   Nchwaning 3
•    The total production capacity of the 3 mining operations is approximately 4 million
     tonnes of saleable ore per annum. This can g
                            p                                                 per
                                                   grow to 4.8 million tonnes p annum
     over 2 years
       •   Approximately 75% is exported
       •   Approximately 25% sold locally to Cato Ridge and other local consumers


    Assmang is the largest single producer of manganese ores in South Africa

                                                                                                                 20




                                                                                                                      10
                                  Quality Resources
•   About 80% of the world’s manganese resources are contained in the Kalahari Manganese
    Fields (KMF), which is 40km long (North to South) and 15km wide (West to East)
      •     40% of the KMF is high grade and 60% is low grade
      •     Assmang has the right to mine 60% of the high grade KMF
      •     Homogenous grade distribution within each sub-area
Assmang manganese ore resource statement summary (June 2007)
                                         Resources                            Reserves
                                 Million tonnes      Mn%         Million tonnes          Mn%
Nchwaning Body 1                    143.4            45               114.7              45
              Body 2                181.9            42
Gloria        Body 1                 97.6            38               75.0               38
              Body 2                 67.9            32

          Assmang has access to sufficient ore to support continued mining activities
                    at the current production rate for more than 30 years

                                                                                               21




                                Geological depiction

                            Black Rock                                    KMF

                       KMF




           Khumani




           Beeshoek

                                                                                               22




                                                                                                    11
                              Hotazel formation
                               •   Manganese orebodies 6 m thick
                               •   Parting between No 1 and No 2 orebody = 20 m
                               •   No 2 body lower in Mn and higher in Fe




                                                 No 2 Mn orebody


                                                 Mn marker

                                                 No 1 Mn orebody




                                                                                    23




                       Gloria mining operations




Current mining development                     Gloria consists of:
•   Current production rate = 400 000 tpa          • Decline
    doubling in 2 years                            • Second outlet/vent # (shaft)
•   Grade = 38% Mn content                         • W hi & S      i Plant
                                                     Washing Screening Pl t
•   LoM = > 50 years                               • Loadout station
•   Employees = 200




                                                                                    24




                                                                                         12
                           Nchwaning operations
•   Current production rate = 3.6 mtpa
•   Combined grade = 44% Mn content
•   LoM = > 30 years
•   Employees = 1 000
•   Nchwaning 3 Mine consists of:
     • A vertical 5.6 m diameter persons shaft
     • A vertical 5.6 m diameter ventilation shaft
         22                                    11.5
     • A 2.2 km long decline shaft inclined at 11 5 degrees


                       Typical high grade Manganese Ore product
             Mn – 48.5 %        Phos – 0.05%         Silicon – 3 to 6%
             Mn:Fe – 6          Alumina – 1%


                                                                                       25




                         Nchwaning mining area




                                         Graben Fault

                    Nchwaning 3                         Nchwaning 2      Nchwaning 1

                                                                                       26




                                                                                            13
            Nchwaning 3
          underground layout




                                              27




          Nchwaning section view

3 Shaft   Graben            2 Shaft




                            Manganese seams
                          Manganese seams




                                              28




                                                   14
                                                 Nchwaning estimated position
                                                     on global cost curve
                                    Mn ore cash cost curve, FOB port basis, 2006
                       3.00

                       2.50             World average – $1.30/dmtu


                       2.00
US$/dmtu




                       1.50

                       1.00

                       0.50
                                                      Nchwaning
                                            Assmang




                       0.00

                                    0                     2              4           6                 8             10              12
Source: Hatch                                                                   Million tonnes

                                                                                                                                              29




                                                      Export manganese ore sales
      Assmang manganese ore expected export sales (million tonnes, 100% basis)

                              4.0
                              40
                              3.5
                              3.0
           Million tonnes .




                              2.5
                              2.0                                   Expected manganese ore sales breakdown (2012e)

                              1.5                                                           Export            Local          Total
                                                                    Nchwaning                    2.8           0.7            3.5
                              1.0
                                                                    Gloria                       0.6
                                                                                                 06            0.2
                                                                                                               02             0.8
                                                                                                                              08
                              0.5                                   Total                        3.4           0.9            4.3

                              0.0
                                2005           2006               2007       2008e        2009e            2010e          2011e       2012e




                                                                                                                                              30




                                                                                                                                                   15
                         Black Rock CSI
• Olive Tree Project
• Car wash facility at Black Rock
• Gemstone polishing at Kuruman
• Broiler project at Maruping
• Padstow Bakery Project




                                                     31




                           Section 4
             Cato Ridge Manganese Alloy Operations




                                                      32




                                                           16
                           Cato Ridge overview
•   Cato Ridge Works and Alloys is situated near Durban in Kwazulu-Natal, 1224 km
    from the Black Rock operations
•   Cato Ridge Works produces 230 000 tpa High Carbon Ferro Manganese (HC
    FeMn), of which 160 000 tpa is sold as HC FeMn, the balance being transferred to
    Cato Ridge Alloys
•   Various grades of Refined FeMn are produced by Cato Ridge Alloys. The Refined
    FeMn capacity is approximately ~60 000 tpa
•   Metals recovery plant produces about ~20 000 tpa of FeMn
•   Nchwaning and Gloria ore, as well as Mamatwan Sinter, is railed from the
             g
    Northern Cape province – total ore consumed is ~530 000 tpa
•   Metallurgical coke is imported from China and railed from Durban, Anthracite is
    railed from central KwaZulu-Natal
•   Products are mainly exported to North America and Europe


                                                                                       33




                          Cato Ridge operations
     High Carbon Ferro Manganese – up to 78.5% Mn: One of two producers in the world

    Furnaces

      1

                             ~160 000 tpa HC FeMn
      2


      3

                        ~ 230 000 tpa HC FeMn
      4


      5
                             Dedicated to serve Cato Ridge Alloys ~ 60 000 tpa
      6
                                   Refined Ferro Manganese


                                                                                       34




                                                                                            17
                                               Cato Ridge operations

                       Furnace 1 & 2                  Furnace 3 & 4         Furnace 5               Furnace 6

MVA                                           22           12                     30                     24

Refractories                                 carbon      ceramic              carbon                    carbon


•       Power                                                      Cato Ridge typical plant cash cost breakdown

                                                                       Consumables
                                                                          61.5%
•       Cato Ridge unfortunate incident


•       Manganism                                                                             Other
                                                                                              3.1%
                                                                                          Electricity
                                                                         Labour
•       Rising input costs                                               19.8%
                                                                                           15.6%




                                                                                                                  35




                       Cato Ridge estimated position
                           on global cost curve
High Carbon Ferro Manganese cash cost curve (captive ore transfer price, FOB port basis), 2006

         900

                World average ~ 600
         750

         600
US$/t




         450
                        Assmang Cato Ridge




         300
                                   o




         150

           0

                          1            2              3               4                                       5
Source: Hatch         HCFeMn, cummulative tapped output, Mt gross weight

                                                                                                                  36




                                                                                                                       18
                                    Manganese alloys sold
    Assmang manganese alloys expected sales (thousand tonnes, 100% basis)

                        300

                        250
    Thousand tonnes .




                        200     Split between products (FY 2007)      Tonnes

                        150     HC FeMn (Furnaces 1 to 6)             170,100
                                Metal Recovery Plant                   24,200
                        100
                                Refined FeMn (Cato Ridge alloys)       56,200
    T




                        50      Total manganese alloy sales           250,500

                         0
                         2005     2006          2007          2008e     2009e   2010e




                                                                                        37




                                    CSI and Environmental
                                         management
•    Workforce : 650 permanent employees
•        Numerous community development programmes
•        HIV/Aids d   ti
         HIV/Aid education programmes
•        Occupational hygiene and health care by Life Health
•    ISO 14 001 Certified




                                                                                        38




                                                                                             19
                                             Section 5
                                     Manganese Market Overview




                                                                                                                                           39




                                                                             The world of manganese

                                                                                   6 Kazakhstan
                                                                                               Tur, Vostochny,
                                                                                       • ENRC: Tur Vostochny Zhairem
                                                                         2   Ukraine
                                                                             • Privat: Marganetz, Ordzhonikidze



                                                                                                            5   China
            10 Mexico                                                                                           • ~250 mines total
               • Minera Autlan:                                                        India 3                  • Main Mn reserves
                 Molango, Naopa, Nonoalco                                              • ~125 mines total         Guangxi (~33%)
                                                          9 Ghana                      • MOIL (10 mines)          Hunan (~16%)
                                                            • GMC: Nsuta               • Sandur                 • Largest mine
                                                                                       • Tata                     Daxin(~300Ktpa)
                                                                   4 Gabon
                                                                     • Eramet: Moanda
                                        8
                               Brazil
                               • BPL: Buritirama
                               • CVRD: Azul, Urucum,
                                 Morro da Mina                                                                    7 Australia
                                                                      1 South Africa
                               • TML: Icomi                             • Assmang: Gloria, Nchwaning                • BHPB / AAC1:
                                                                        • Samancor1: Mamatwan, Wessels                Groote Eylandt
                                                                                                                    • CML: Woodie Woodie
                                                                                                                    • OM Holding: Bootu Creek



Data: Hatch Beddows, IMnl.
Note: Rankings shown here are by national manganese mineral resources. 1. JV: BHP Billiton (60%) and
Anglo American (40%)

                                                                                                                                          40




                                                                                                                                                20
                                           World manganese ore producing countries

                         60                                     4 Gabon
                                                                                             1 South Africa
                                                                               7 Australia
                                   Hi h grade (>44%)
                                   High    d
   Manganese Grade (%)
                     )



                         50
                                                3 India
                         40
                                            9 Ghana               8 CVRD                                 5 China
                         30
                                                                2 Ukraine
                         20
                                                 6 Khazakstan
                         10
                                                 g     (<44%)
                                   Medium to Low grade (    )
                         0
                               0           1              2             3        4           5                6         7
                                                                    Production (2006)

                          Bubble size denotes contained manganese reserve base
Source: Hatch; IMnI; Assmang


                                                                                                                             41




                                                    Global crude steel production could
                                               increase by 1.4Bt over the next 20 years

                                                                                                          High-case forecast
                          3

                         2.5
    Billion tonnes




                          2

                         1.5                                                                                  Low-case forecast

                          1

                         0.5

                          0
                                   2000 2001 2002 2003 2004 2005 2010 2015 2020 2025

Source: Hatch


                                                                                                                             42




                                                                                                                                  21
                                                      Resulting in significant increases in
                                                       manganese ore and alloy demand
Base case forecast: ~13Mt of                         Ratio of ~ 2.2 tonnes of ore per tonne of alloy   ~ 30 million tonnes of manganese
extra manganese alloys required                                                                         ore depending on alloy content

                                                                                  Actual Forecast
              nnes alloy production



                                      30

                                      25

                                      20

                                      15

                                      10
    Million ton




                                      5

                                      0
                                           2000 2001 2002 2003 2004 2005 2010 2015 2020 2025
 Source: Hatch


                                                                                                                                          43




                                                   Manganese Ore Market




                                                                                                                                           44




                                                                                                                                                22
                                                                                   Manganese ore producers

       Mn Ore Production 2007 (gross tonnes)                                        High Grade Mn Ore Production 2007 (gross tonnes)
                               Georgia                                                               Brazil
                                       Kazakhstan
                                 1%                                                                  13%
                           ROW             3% Ukraine
                India
                            3%                  7%
                 6%                                                                                                                Australia
                                                Ghana                                                                                30%
                                                  3%

                                                          Gabon
                                                           9%
                                                                                        Gabon
                                                                                         22%

      China
       35%
                                                          South Africa
                                                             14%


                                                                                                                        South Africa
                                                                                                                           35%
                                                 Brazil
                    Mexico                        5%
                                  Australia
                     1%
                                    13%




              Source: CRU, IMnI, Hatch


                                                                                                                                                       45




                                                                                 Assmang is ranked third globally
                                                                                 based on manganese ore grade
Average manganese content for ore producing countries
              Most suitable                                                                                                     Least suitable
              for HCFeMn                                                                                                        for HCFeMn
60%
              production                                                                                                        production

50%



40%




30%



20%



10%



0%
        Comilog         GEMCO    Assmang Consolidated BHP Billiton Bootu Creek   CVRD     ENRC     Moil,      Minera   Privat      Ghana       China
        (Eramet)         (BHP)           Minerals Ltd (S Africa)                                 Sandur,      Autlan             Manganese
                                                                                                  others                          Company

  Source: Hatch


                                                                                                                                                       46




                                                                                                                                                            23
                                                   Manganese ore production history
                                                                                                 OMR - Bootu Creek
                                                                                                 PMI - Australia
                    45
                                                                                                 ENRC Kazach con
                    40                                                                           ENRC Kazach

                    35                                                                           Moil - India
         Millions

                                                                                                 India
                    30                                                                           China

                    25                                                                           Chiature Georgia
                                                                                                 Ukraine
                    20
                                                                                                 Assmang

                    15                                                                           Brazil
                                                                                                 CVRD
                    10
                                                                                                 Comilog

                    5                                                                            Ghana
                                                                                                       Australia
                                                                                                 CML - A t li
                    0
                                                                                                 Samancor - SA
                             2003           2004           2005            2006      2007e
                                                                                                 Gemco - Australia
                         Source: CRU Jan 2007; Assmang estimates

• China dominant producer
• In 2005, price increase resulted in oversupply, from many small producers
• In 2008, similar volume increases are expected but from the larger players

                                                                                                                             47




                                                      Manganese ore market summary
World Manganese Ore market balance (Contained Mn, Thousand tonnes)

    1500


    1000


      500


        0


     -500


    -1000


    -1500
                    2003       2004       2005        2006         2007e     2008e   2009e   2010e        2011e      2012e

    Source: CRU Jan 2007




                                                                                                                             48




                                                                                                                                  24
                                                              Limited potential for increased
                                                                     manganese ore supply
                  Scope for change in manganese ore contained output over the next ten years
                       Country             Output, Kt 1    Potential for change

                       Australia                 2 050               p
                                                           Current expansions (
                                                                              (BHPB, OMH) plus exploration p
                                                                                   ,    )p       p         potential.

 Potential for         Gabon                     1 500     Large, high-grade undeveloped resources but remote location.
 expansion             South Africa              2 400     Greatest potential. Kalahari hosts world’s largest Mn resources.

                       Ukraine                     650     Large resources but low-grade ore. Tavrichesky may re-open.

 Stable output         Georgia                     100     Low-cost mines but low-grade ore.

                       Ghana                       600     Already operating at capacity. Limited resources.

                       India                       800     Domestic oriented output.

                       Kazakhstan                  200     High cost mines low grade                 location.
                                                           High-cost mines, low-grade ore and remote location

                       Others                        50    No other countries host significant Mn resources.

 Probable              Brazil                      600     Long-term decline. Resources near exhaustion within 20 years.
 declines
                       China                     3 050     Long-term decline. Resources near exhaustion within 20 years.

                       Total
 Data: Hatch Beddows. Note 1. Mn contained
                                                12 000     Compared to ~30 million required over 20 years
                                                                                                            !
                                                                                                                              49




                                              Manganese ore prices were overdue
                                                           an upward correction
Manganese Ore pricing - US cents per Mn unit, fiscal year
 1500
                                                                                                ~ +400%
                                                                                                   400%
 1300

 1100
                                                                                                                        ?
   900

   700
                                                                     381
   500                                                              +63%         287         258
             194         202        189       202          234
                                                                                -25%        -10%
             +7%         +4%                  +7%         +16%
   300                              -6%
                                                                     308
   100                                         163        189                    232         209
                 157      163       152
  -100       2000        2001       2002      2003        2004      2005        2006        2007       2008     2011   2016

                                                          48%
                                                          Nchwaning 48%           Gloria
                                                                                  Gloria
 Source: Assmang




                                                                                                                              50




                                                                                                                                   25
                                          Outlook for manganese ore market
Increased consolidation in the market means more disciplined marketing
•   Ukrainian, Georgian and Eastern European capacity now under Ukrainian ownership, particularly in
    Europe (Privat)
•   Similar to Iron Ore producers

Backward integration of steelmakers into manganese
•   Arcelor Mittal purchased the OFZ smelter in Slovakia and became partners in the Kalagadi mine and
    smelter project in South Africa

Reducing grades, particularly in China
•   Grades fallen from around 26% to 19% Mn

         p                             p                  p
Rail and port bottlenecks continue – expansion slow and expensive
•   Especially true for high grade producers
•   South African export capacity expansion potential still being finalised
     •   Accommodation of new BEE entrants

Production cost and capital pressures continue
•   Labour ; Electricity ; Explosives ; Steel ; Tyres


                                                                                                        51




                                  Manganese Alloys Market




                                                                                                         52




                                                                                                              26
                                   China has become a large producer of
                                                            crude steel

                1600                                                                                            36%       40%
                                                                                                 34%
                1400                                                        31%                                           35%
                1200                                  26%                                                          1343.1 30%
                                 23%                                                               1249.5
                1000                                                               1146.1                                 25%
                                                           1068.5
Million tons     800                 969.4                                                                                20%
of crude         600                                                                                               489    15%
                                                                                                   423
steel                                                                              356
                 400                222                   280                                                             10%
                 200                                                                                                      5%
                    0                                                                                                     0%
                                 2003                 2004                  2005                 2006           2007

                                   World                               China                             China vs world

                  Source: Assmang; International Iron and Steel Institute (IISI)
                  Accounts for 98% of world steel production


                                                                                                                                53




                                                         China is the largest producer of
                                                                       Ferro Manganese
               World production of manganese ferro-alloys by region (2007)
                                                                          Europe
                                               Af i / Middle
                                               Africa Middl              Economic
                                                    East                   Area
                                     Other Europe    7%                     8% Japan
                                         2%                                       4%
                                     CIS                                                 India
                                     15%                                                  6%
                                                                                            Other Asia
                                                                                               4%

                                                                                         Americas
                                                                                           6%



                                                      China
                                                      48%

                                             2005: China 43%
                  Source: IMnI




                                                                                                                                54




                                                                                                                                     27
                                              China’s manganese alloy production
                                                    has almost doubled in 3 years
     Chinese manganese alloy production, Thousand tonnes
       7,000                                                             295
       6,000
       6 000                                                     280
       5,000                            249                279           2,091
                                                                 1,700              Refined
       4,000        172
                                    1,310                1,420                      HCFeMn
       3,000
                    925                                                             SiMn
       2,000                                                     3,440   3,764
                                    2,520                2,750
       1,000        1,970
           0
                    2003            2004                 2005    2006    2007

•       China exports about 18% of its alloy production and is an important swing exporter
•       China’s growth is skewed towards Silicon ferro manganese
•       Assmang produces mainly HC FeMn, with sales to North America and Europe being less
        exposed to Chinese growth in exported alloys
•       Assmang is also targeting developing regions in South Africa, India, South America and
        the Middle East

                                                                                                   55




                                                   Increased manganese ore imports
                                                                required from China
Consumption of manganese alloys in China, split by origin of manganese ore (in units of contained Mn)


               7                   Others
                              Ghana 10%
                               2%

                            Gabon
                                                     Australia
                             19%
                                                       47%




 Million                       South
                               Africa     Brazil

 units of                       16%        6%


contained
   Mn
                               From imported ore
                             smelted in China (68%)



                               From Chinese ore
               0             smelted in China (32%)

    Source: Hatch
                                              2005                                   2025

                                                                                                   56




                                                                                                        28
                                            Chinese manganese alloy market is
                                                                    changing
    Cost pressures                                                          Cost reduction

                                              Increase of export tariff
Price increases of electricity and               from 10% to 20%           Increased manganese
raw materials                                                              grade in alloy and ore

Seabourne freight
                                                    Increasing                Chinese production
Inbound & Outbound
                                                      Cost of                  required for local
                                                       Ferro                     consumption,
Increasing cost of labour                             Alloys               possibly going to import
Increasing input in environmental
                                                                            a large amount of alloy
   t ti
protection
                                              Increasing demand for
                                               Chinese manganese                More efficient
                                                      alloys                   production and
                                                                              improved use of
                                 Governmental intervention in closing            technology
                                  down inefficient smelting capacity
  Source: Minmetals


                                                                                                    57




                                                Typical world alloy cost breakdown
     Structure of world average Electric Arc Furnace site operating costs for HCFeMn, 2006, %




                                            Other
                                             18%

                                                                          Mn Ore
                                                                           42%
                               Reductant
                                 16%


                                                 Electricity
                                                    24%



       Source: IMnI; Assmang



                      Assmang benefits from being an integrated alloy producer

                                                                                                    58




                                                                                                         29
                                      South Africa’s manganese ore output may need to increase
                                       by at least 150% to meet anticipated growth in demand for
                                                               manganese alloys in steelmaking

Thousand tonnes                                      2006                ~2026        Change              Comments

Australia                                           2 000                 4 000       + 2 000

Brazil                                                600                  100          - 500         Nearing exhaustion

Bulgaria                                                  -                200          + 200

China                                               3 100                  200         - 2 900        Nearing exhaustion

Gabon                                               1 500                 2 500       + 1 000

Georgia                                               100                  200          + 200

Ghana                                                 600                  600               -        Already at capacity

India                                                 800                 1 000         + 200

Kazakhstan                                            300                  300               -             High Cost

South Africa                                        2 300                 5 800       + 3 500

Ukraine                                               700                 2 200       + 1 500        Re-open Tavrichesky

Total                                              11 600                17 100        +5 500           13 mt required

Data: Hatch Beddows. Note: 1. Mn contained. Data is approximate only                                                     !
                                                                                                                                 59




                                                                            High Carbon Ferro Manganese
                                                                                  Demand/Supply Balance

                   125                                                                                           3000
                           2007:                                   Forecast expected to match
                   100
                                                                       g
                                                                   manganese ore
                                   4.4
                           Supply: 4 4 mt (+9%)                                                                  2500
                    75                                             Small surpluses expected from 2012
                           Demand: 4.7 mt (+15%)
                    50
 Thousand tonnes




                                                                                                                 2000
                    25
                                                                                                                         US$/t




                     0                                                                                           1500
                    -25
                                                                                                                 1000
                    -50
                    -75
                                                                                                                 500
                   -100
                   -125                                                                                          0
                           Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
                          2004 2004 2004 2004 2005 2005 2005 2005 2006 2006 2006 2006 2007 2007 2007 2007 2008

              Source: IMnI, CRU 16 April 2008, Manganese Market Review


                                                                                                                                 60




                                                                                                                                      30
                              Manganese alloy prices have experienced
                                    an upward correction similar to ore
    Ferro Manganese Prices, Calendar year averages, US Delivered, $/t


    3000
                                                                              2,300
    2500                                                                     YTD 94%


    2000
                                                  1,202                    1,184
                                                                                                     ?
    1500                                          152%                      46%
                                                                  809
                                                           668
    1000                                                          21%
             473        452     478        477            -44%
             +7%        -4%     6%         0%
     500

       0
            2000       2001    2002     2003      2004    2005    2006      2007     2008   2011   2016

                              48% Manganese Ore              US Delivered Ferro Manganese

    Source: Assmang




                                                                                                          61




                                      Outlook for manganese alloy market
Increased raw material shortages
•      Manganese ore – increased consolidation and control, amid a reducing resource
•      Reductant - Coking Coal + 300%
•      Labour – Specialised skills base
•      Electricity

Electricity shortages resulting in increased costs and volatile production
•      South African power shortages expected to persist
•      Chinese power disruptions

Environmental and safety regulations are becoming more stringent
•      Closure of inefficient operations
•      Production disruptions/reductions due to increased regulatory interventions
       P d ti di        ti   / d ti      d t i          d     l t    i t     ti

Government imposed price interventions in China
•      Minimum quota based pricing
•      Export taxes
•      Anti-dumping restrictions

                      Future expansion significantly more expensive

                                                                                                          62




                                                                                                               31
                        Section 6
                  ARM Ferrous: Manganese




                                                                                  63




                                               Assmang manganese
                                              competitive advantage
             → Nchwaning III – only new manganese ore mine in last seven years
  Timing
             → Invested capital in new mine – lower cost of invested capital



             → Currently mining 60% of high grade resources in KMF ( in SA)
High Grade
             → 3rd highest grade globally
                  → Nchwaning average grade over life of mine = 44%Mn
                  → Gloria average grade over life of mine = 36%Mn



             → Bottom quartile on the cost curve for ore and alloy
Low Cost
             → Integrated High Carbon Ferro Manganese alloy producer
             → New cost effective infrastructure, shafts and plants



                                                                                 64




                                                                                       32
                                                       Assmang manganese
                                                      competitive advantage
                   → 75 years of mining/marketing experience
 Experience
                        → Customer relationship
                        → 60% of Nchwaning resouces mined i.e still 40% available at
                               fN h    i             i di      till        il bl t
                           low cost mining
                        → 20% of Gloria resources mined

                   → Established customer base over many years
 Customers
                       in ore and alloys operations

                   → To facilitate higher steel grade demand
R fi d FeMn
Refined F M
  capability

                   → Consistency of product key to customers
 Consistency
                        → Homogenous ore body
                        → New underground blending stockpiles at Nchwaning

                                                                                            65




                                                       Assmang Manganese
                                                      competitive advantage
                   → Excellent blend ore and ideal for use in high grade alloys and steel
   Product
                       products
                   → Low degradation in transport and furnaces
                   → Less fines – improved smelter efficiencies
                   → Low phosphorous


Infrastructure     →    Excellent surface infrastructure currently in place
                        → New town for housing employees
                        → Water link in place
                        → Power supply secured (with ability to supplement Eskom
                           electricity if required)
                        → Rail links in place


Strong financial position to pursue further opportunities to develop the business

                                                                                            66




                                                                                                 33
                                                                        Assmang volume growth
•   Manganese Ore mining capacity = 5.4 million tonnes per annum (incl new plant)
     •   Local / Cato Ridge capacity requirements                   = 0.9 million tonnes per annum
     •   Total volume available for export
                                      p                                                  p
                                                                    = 4.5 million tonnes per annum

•   Resource can support significant increase in production, but volume growth constrained by
     •   Significant increases in capital cost
     •   Logistical constraints
     •   Future market demand
     •   Electricity: Ability to expand alloy capacity – Cato Ridge planned 80 000 tonne per annum increase delayed till 2014
         (EIA outstanding)

•   Main export channel is through Port Elizabeth, Assmang will need to continue to be innovative
     Million tonnes of exported              PE total capacity             Assmang allocation
     manganese ore
     Currently                                     3.5                            1.7
                                                                                                      Currently feasibilities
     2010/11                                       4.2                             ↓                  are underway to
     2012                                          6.0                            2.9                 increase South Africa’s
                                                                                                      manganese export
                                         Other logistics options                  0.9
                                                                                                      capacity to 14 million
                  Assmang anticipated export capacity to 2012                     3.4                 tonnes in the long term


                                                                                                                                67




                                                Assmang is a
                                             successful integrated
                                                            d
                                             manganese producer



                   Quality                               Experienced                                   Strong
                 Resource                                        People                              Manganese
                                                                                                       Market




                 Stakeholder                                     Balance                               Good
                 Relationships                                     Sheet                              Timing
                                                                                                                                68




                                                                                                                                     34
            69




Thank you




                 35

				
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