LONMIN MARKETS SEMINAR 2009 October 2009

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					Lonmin Plc




        LONMIN MARKETS SEMINAR 2009
        October 2009
                                      1
Lonmin Plc

Welcome & Introduction




        Albert Jamieson
        Chief Commercial Officer
                                   2
The Platinum & PGM Investment Case

                      Platinum demand to resume long-term growth trend?
                    9.5                                                                                    1800
                                                                                                           1600
                    8.5
                                                                                                           1400
                                                                Jewellery contracts
   Million ounces




                    7.5                                          due to high price                         1200




                                                                                                                  US$/oz
                                              3.1% per year
                                             average growth
                                                                                                           1000
                    6.5                        (180 koz pa)
                                                                                                           800
                                                                               "Credit
                    5.5                                                        Crunch"
                                                                                                           600
                                                                                                           400
                    4.5
                                                                                              Forecast     200
                                                 US recession
                    3.5                                                                                    0
                          90                95             00                05          10           15
                                           Annual Demand               Annual Average Price (right)
         Source: Historical - JM, Forecast - Lonmin




                                                                                                                           3
Today’s Agenda

 PGM catalysts for exhaust treatment – the present & the future
     Dr Bob Farrauto, Research Fellow Hydrogen & Fuel Cells, BASF Catalysts LLC

 The role of jewellery development in Platinum demand
     James Courage, Chief Executive, Platinum Guild International

 PGM supply
     Troye Brady, Senior Manager, Market Analysis, Lonmin

 PGM demand
     Wilma Swarts, Head of Marketing, Lonmin

 PGM market outlook
     Albert Jamieson, Chief Commercial Officer, Lonmin


                                                                                  4
Lonmin Plc
PGM Catalysts For Exhaust Treatment –
The Present & The Future




        Dr Bob Farrauto
        Research Fellow, Hydrogen & Fuel Cells
        BASF Catalysts LLC                       5
Precious metal catalysts for exhaust treatment:
           The Present and Future

                           Lonmin
                           Markets Seminar
                           October 2009
                           R. J. Farrauto



                                                  Clean air




      Pollutants from the internal
      combustion engine
                                                              6
Primary pollutants from gasoline fueled vehicles




                  - Carbon monoxide (CO)
                  - Unburned hydrocarbons (HC)
                  - Nitrogen oxides (NOx)




                                                   7
  Precious metal materials are the catalytic agents

Pollutants catalytically converted to                                         Non-pollutants

                                    Platinum or Palladium
Carbon monoxide (CO) + Air                                                  Carbon dioxide (CO2)

                                        Platinum or Palladium
Unburned hydrocarbons (HC) + Air                                             Carbon dioxide and Water (H2O)

                                                     Rhodium
Oxides of nitrogen (NOx) + carbon monoxide                                  Nitrogen (N2) and Carbon dioxide

            Precious Metals supported on Thermally Stable Washcoats (Alumina-Al2O3) and monolith
                                                   Pt catalytic sites



                       Al 2 O   3
                    washcoat

                                                                        o
                                                   Pore 20A
                                                                                                       o
                                                                                           Pore 100A

                                                     Monolith wall


                                              Monolith substrate



                                                                                                               8
              Three Way Catalytic (TWC) converter
              removes three pollutants from the exhaust


                                        MONOLITH WALL
                                   TWC CATALYST WASHCOAT


    Primary pollutants                                      Non-pollutants
    HC, CO, NOx + O2                                        CO2 + H2O +N2

                                    TWC CATALYST WASHCOAT

                                        MONOLITH WALL


TWC = Pt, Pd, Rh + CeO2- ZrO2
        La2O3-stabilized Al2O3 // Monolith
                                                                             9
        Multiple washcoat layer architecture
Multiple catalyst layers are used for more effective use
of precious metals while meeting emission standards world wide




                                                                cordierite
                                                                monolith
                                                                substrate




                                                     Top coat



                                  Bottom coat


                                        Support

                                                                             10
Why not use non-precious metal catalysts
such as copper, cobalt, nickel, etc ?

Non-precious metals lack sufficient thermal stability and resistance to poisoning to
retain activity to meet the duty cycle requirements for modern three way catalysts.




 Precious metal catalysts on monolithic structures were proven to have
 sufficient thermal stability and poison resistance.

 They are still the dominant active components in modern three-way catalysts
 capable of performing for 150,000 miles at temperatures approaching 1000oC.


Catalytic Air Pollution Control: Commercial Technology, Wiley 2009



                                                                                       11
Composition of diesel emissions



   -PM (Particulate Matter)
        - dry soot
        - liquid particulates
        - sulfates
   - Carbon monoxide
   - Gaseous hydrocarbons
   - Nitrogen oxides




                    - Diesels operate with a large excess of
                    air making them more fuel efficient with
                    longer life than gasoline engines

                                                               12
                                            NOx- Particulate trade-off
                                            diesel emission standards


High engine temperature                                   higher NOx but lower PM


                  10

                   9                      Typical Engine Out - European OE
                                          Engine tuned to minimize particulate

                   8
                                                                                Low engine temperature               lower NOx but higher PM
                   7
 NOx (g/bhp-hr)




                   6

                   5
                                                                              US EPA - 1998
                   4

                                     Euro III - 2000
                   3

                           Euro IV                                                                Typical Engine Out - US OE
                   2       2005                                                                Engine Tuned to minimize NOx
                                         Euro V 2008
                                         Japan 2005                 US EPA
                   1
                                        US EPA - 2007                2002
                                        US EPA - 2010
                   0
                       0      0.02       0.04      0.06      0.08      0.1     0.12     0.14      0.16    0.18     0.2     0.22

                           high temperature                            PM (g/bhp-hr)
                                                                                                           low temperature
                                                                                                                                               13
Increasingly sophisticated diesel solutions required


                    1994                 2003                   2010

                                                                NOx
                                                             Destruction
                                            CSF                   CSF

                        DOC                 DOC                  DOC

                  Diesel Oxidation   Catalyzed Soot Filter   NOx Destruction
                      Catalyst

                    Removes liquid       Combusts Soot        Converts NOx
               particulates and HC, CO                           to N2




                                                                               14
Capture of particulates through a wall-flow filter




                    Porous Filter Wall
Soot-Laden Gas
Enters Channel
                           Catalyst          Plug

                                            Gas Must Filter Through Wall
         Plug                            Soot-Free Gas Exits Catalyst




                                                                        15
  Simplified diesel exhaust catalytic
  after-treatment system (2010)


                                     C + O2   CO2
                                                           catalyzed selective
DF + O2     CO2 + H2O + Heat        Pt catalyzed           reduction of NO2
                                    soot filter

                                                                                         N2

          Pt, Pd diesel oxidation                                          ammonia
             catalyst                                                      destruction
                                                                           Pt catalyst
                                                                  4NH3 + 3O2     2N2 + 6H2O
 diesel fuel (DF)
 Injection                                               urea [CO(NH2)2]
                                                         injection

                                                    CO(NH2)2 + H2O      2NH3 + CO2

                                                    4NH3 + 2NO2 + O2    3N2 + 6H2O



                                                                                         16
                     The Future
 The internal combustion engine to the fuel cell
 vehicle: the road to the hydrogen economy
INTERNAL COMBUSTION                         INTERNAL COMBUSTION ENGINE
       ENGINE                                   + BATTERY = HYBRID
                                                 +        --

                                             +                     2002

   1885-present
                                                     Pt        FUEL CELL
      +      --            Pt ANODE
                                                                 H2
                                       H2          SOLID
                            SOLID                 POLYMER
                    +      POLYMER               MEMBRANE
                          MEMBRANE
                                                                 O2
BATTERY +                              O2            Pt
                          Pt CATHODE
FUEL CELL HYBRID
                   2005
                                                 2015?
                                                                           17
                 Fuel Cell Vehicles




Japanese Automobile
Research Institute (JARI)
  www.jhfc.jp




                                      18
                        GM Autonomy concept vehicle:

                         A revolution in the automobile
                                                                          Wheel Hub Motor

                                           Hydrogen Storage Tank                            Lithium-ion battery


                          By-wire System

      Fuel Cell Stack




                                                                                               Wheel Hub Motor

                                                                   By-wire System
Front Electric Motor



                                                                                                                  19
The Hydrogen Filling Station on the Hydrogen Highway




                                                             Storage Tanks
    Natural Gas                             H2 Compressor

                                                                  5000psi
              H2                   H2
           Generation        Purification                            H2
                                PSA
                                                 Fuel Cell   Power to
                                                             Service Station




           Advanced SMR




   Printed with permission
     from Chevron

                                                                               20
CONCLUSIONS


  Precious metals, because or the high activity and robustness in the severe
atmosphere of the exhaust, are the only catalytic materials capable of
controlling emissions from gasoline engines

 Precious metal catalysts will continue their role In controlling diesel emissions

  The hydrogen economy is emerging. Hydrogen will be produced from
infrastructure fuels and ultimately from solar, wind, geothermal
and non-edible biomass

 Precious metal catalysts are the only viable materials for PEM fuel cells
and will play an important role in hydrogen generation and the hydrogen economy

  Fuel cell technology, the ultimate solution for transportation applications,
is advancing rapidly for combined residential combined heat and power,
portable power and vehicular applications

 Environmentally friendly recycling of the metals will be a critical
part of the hydrogen economy
                                                                                     21
Lonmin Plc

Questions




             22
Lonmin Plc

The Role of Jewellery Development in Platinum
Demand




        James Courage
        Chief Executive
        Platinum Guild International            23
Platinum Guild International 

• PGI’s role since its inception in 1975 is to develop 
  demand for platinum jewellery through fully 
  integrated marketing programmes 
• Jewellery sales help balance demand to the supply 
  of platinum and acts as a price tensioner and a 
  shock absorber depending on supply and industrial 
  demand
• Funded by the major SA producers 
• Core Markets: ‐ China, Japan, USA, UK, India 


                                                    24
  Understanding the role of 
jewellery in the platinum mix




                                25
       A tale of two decades  

1990’s
• Strong jewellery growth – steady price, weak 
  industrial demand
• Jewellery ounces ranged from 36% to 52% of 
  demand 
2000 to 2008
• Strong industrial demand and rising price
• Jewellery ounce share (of new metal) from 42% to 
  21% of demand
• US$ revenue increased

                                                 26
            Share of Platinum sales by application 
          1991‐2008 – industrial demand dominates
‘000 oz
        The challenge and the 
             opportunity
2008‐2009
• Feb 2008 to Sept  2008 – high prices 
   • Recycling of jewellery up 
   • Sharp fall in demand for new metal 
• Oct 2008 to Oct 2009 – price fall 
   • Accelerated demand driven by China 
       • Japan returned to platinum – chain, bridal and jewellery –
         less recycling 
       • Opportunity to build on India’s strong economic growth 
       • Recession affects US, Europe and Japan  



                                                                      28
China Pt Jewellery Oz Sales 2007‐ June 2009




                                          29
                     Japan Net & Net + Recycled Platinum Sales 

              1400

                        1253
              1200

                        1060
              1000
                                  911      893
'000 ounces




                                                    885
              800                          780
                                  750                        721      719
                                                    660
              600
                                                             560               527      540      535
                                                                      510                                 520
              400
                                                                               360                        350
              200                                                                       180
                                                                                                 55
                 0
                     2000      2001     2002     2003     2004     2005     2006     2007     2008     2009?

                               Japan Net sales of new metal          Japan Net + Recycled



                        Based on JM  and PGI estimates – 2009 PGI estimate
Low gold premium adds rational for increase in 
platinum sales Pt & Au (Jan 08 – Sep 09)

USD/ounce
2500



2000          1976 1968          1971
                          1900          1918
                                               1792

1500   1556                                    122%
                                                      1406
                                                                                         10%                         1218          12441289
                                                             1188                                        1163 1130          1162              29%
1000                                                                                         1036 1081
              922   968
                          910                  940                                     950   943 924           929   946    934    949 996
       890                       889    889                         874                859             890
                                                      839    830    807    812   818
                                                                                 816
                                                                           761

500           471   490   449    438    451    429
       376
                                                      316                                                                          275 293
                                                             252           208               206         227   230   246    248
                                                                    192          177   189         202

  0




                                                        Gold          Pt         Pd


                                                                                                                                               31
Current platinum jewellery market

• China sales into manufacturers up 60%+
   – Consumer sales + stocking at retail and manufacturer 
• Japan sales of new metal up 500%+
   – Recycling down
   – Chain growth increasing share of bridal and jewellery  
• US – weak market down on 2008
• UK ‐ hallmarking numbers running similar to 2008
• India – ounces up of a low base 



                                                               32
         China Platinum Jewellery 

• 60%+ of current global 
  jewellery demand 
• 70% of sales plain jewellery 
  sold by weight 
• 75% of brides* chose Pt for 
  their wedding
• Plain and gem set platinum  
  up to 30% of jewellery  in 
  stores 
• Long term PGI investment 
  (1997)
• Operate in 16 main cities 

                                     33
                                                                                BRAND AMBASSADORS




                                                                       DESIGN
                               CONSUMER PR
ADVERTISING
                                                                                         TRAINING &
                                                      INSTORE
                                                                                         EDUCATION




                                                                          TRADE PR & FAIRS


              ABOVE THE LINE                  BELOW THE LINE     SALES PROMOTION    WORD OF MOUTH




                                             ONLINE
ADVERTISING                                                                     BLOGS

              PRESS RELEASE                    PRECIOUSPLATINUM.COM                     FORUMS
                              ADVERTORIAL




       TRAFFIC
       DRIVING
      CAMPAIGNS
     Western Bridal Campaign 2009




• Focus on bridal
• Affected by price and economy 
• UK better placed than US 
India

• Re‐launched with a new TV and print programme  
• Positive sell in at key Indian Jewellery show in 
  Mumbai – early August  
• Strong market growth in South 




                                                      36
37
Japan – Bridal and Thanks Days 
     Platinum Advertising




                              38
       Role of Jewellery and PGI


• Focus on helping  to balance demand to 
  supply over the short and longer term 
• Fully integrated global marketing 
  programmes
• Develop short term volume growth when 
  industrial demand down
• Build a strong platinum brand that 
  reduces the price elasticity factor 
                                       39
40
Lonmin Plc

Questions
Lonmin Plc

  PGM Supply




        Troye Brady
        Senior Manager, Market Analysis
  Supply – Current Context
                        Planned Greenfield & Brownfield
                        PGM Mining Projects 2008 vs 2009

• Socio-political
  complexities
• Cost and ease of
  doing business
• Strong Rand
• Industry under-
  investment
• Power supply & cost
• Increased focus on
  safety                                Source: Lonmin, SFA, Company Reports


                                                                      43
Operating Environment

SA productivity and wage cost: 2000-2008
                                           • Above-inflation wage
                                             increases (10%+)
                                           • Skills shortages
                                           • Increasing union
                                             expectations
                                           • Employee engagement
                                             strategies




                                                               44
Geological Shift
  South African PGM producer maximum shaft depths
  (mbs)


                                   Eastern E2
                                   Eastern E3


                                                Eastern 1
                        Karee 1B

                        Karee 4B




                                                                        Karee K3




                                                                                                    Karee K4
                        Newman




                                                             Limpopo




                                                                                   Rowland
                                                West B3
               West 1


                        Hossy




                                                             Saffy
     0



   500

       Weighted average shaft depth today 820mbs
   Weighted average shaft depthtoday 820 mbs
  1000

          Weighted average depth depth in
          Weighted average shaft shaft in 10 years 10 years 1,049
                                                      1,049 mbs        mbs
  1500
                                                                                   Karee K4 = New shaft

  2000

                            Lonmin shafts                   7 new shafts - next 10 years
  2500
 Source: SFA




                                                                                                               45
 Supply Variance Increasing
                    400

                    300

                    200
      '000 ounces




                    100

                      0

                    -100

                    -200

                    -300

                    -400
                           2000   2001   2002   2003    2004    2005     2006   2007   2008

   Source: Johnson Matthey                       South Africa   Global


Difference between JM Final and Interim report numbers                                        46
Scrap To The Rescue




                      47
Primary Supply Forecast
                      8.0

                      7.0

                      6.0
                                                                      North America
     Million ounces




                      5.0                                             Russia
                                                                      Zimbabwe
                      4.0
                                                                      South Africa
                      3.0                                             Total - Sep'08 Est
                                                                      SA - Sep'08 Est
                      2.0

                      1.0

                      0.0
                            2005   2006   2007   2008   2009   2010
     Source: SFA




                                                                                           48
 Over-estimations, supply cuts, capital project postponements
       Conclusions
PGM Net cash cost curves at h ig h, low ZAR:USD (2009 data)
Net cash cost $/4E P GM oz

1100                     ZAR (Strong) = 7.98:1 (July 2009 average)
                                                        th
                          ZAR (Weak) = 10.53:1 (5 March 2009)
1000


 900     July 2009 weighted average basket pri ce ($871/4Eoz)

 800
                                                                                        Toda y's ra nd close
 700                                                                                     to stronge st ra nd
                                                                                              this ye ar
 600


 500
                                                                                                                                      • Tough operating environment
 400


 300
                                                                                                                                        • Deeper mines
 200                                                                                                               Unprofita ble Pt     • Lower grades
                                                                                                                   oz = 733 koz or

 100
                                                                                                                      15% of SA
                                                                                                                       industry
                                                                                                                                        • Rising Costs
   0
                    1              2               3               4              5
                                                       Cumulative production (4E Moz)
                                                                                             6                 7             8
                                                                                                                                      • Rand strength offsetting price
       Source: SFA
                                                                                                                                        rises
                                                                                                                                      • On-going industry under-
                                                                                                                                        investment
                                                                                                                                      • Industry focus on cost cutting
                                                                                                                                        & restructuring


                                                                                                                                                                 49
                                         Supply forecast risk remains on the downside
Lonmin Plc

  PGM Demand




        Wilma Swarts
        Head of Marketing
Demand Drivers


                 Automotive Sector




   Jewellery        PGM Demand       Investment




                  Other Industrial




                                                  51
   Gearing down for an uphill climb

Quarterly vehicle sales (lhs; '000 units) and platinum supply (rhs; '000 oz)


                                                                                                                                                   Scrappage                                  US auto inventory: 39 days' supply
14,000                                                                                                                                                            9,000
                                                                                                                                                   Incentives
                                                                                                                                                                                        140

12,000                                                         12 quarter                                                                                         8,000
                                                               downturn                                                                                                                 120

10,000                                                                                                                                                            7,000                 100
            10 quarter                                                                                                                                                                              LT Avg
            downturn                                                                                                                                                                                66 days




                                                                                                                                                                          Days supply
 8,000                                                                                                                                                            6,000                 80


                                                                                                                                                                                        60
 6,000                                                                                                                                                            5,000


                                                                                                                                                                                        40
 4,000                                                                                                                                                            4,000

                                                                                                                                                                                        20
                                                                                                                               vehicle sales
 2,000                                                                                                                                                            3,000
                                                                                                                               platinum supply
                                                                                                                                                                                         0
       0                                                                                                                                                          2,000                       Mar   Jun   Sep   Dec   Mar   Jun
           80   81   82   83    84   85   86   87   88   89   90   91   92   93   94   95   96   97   98   99   00   01   02   03   04   05   06   07   08   09                               08     08    08   08    09     09
Source: SFA (Ox ford) from Ox ford Economics
                                                                                                                                                                                              Source: Lonmin




                                                                                                                                                                                                                                  52
 Legislation - a breath of fresh air for PGMs
     Emissions standards: Western world
     (g/km)
      0.03
                                                                                                Euro IV (d)
                                                                                                  2005
     0.025

      0.02

PM                                                      Japan ( d)
     0.015                                                2005


      0.01    USA Tier II*
                                        Japan (d)
              2004-2007 Euro V&VI (g)                                  Euro V (d)
                               2009         2009
                                                                         2009
     0.005
                                          Euro VI (d)
                                          2014
         0
            0               0.05                0.1        0.15            0.2           0.25                   0.3
        * Bin 5                                            NOx


                                                                     Indexed PGM automotive demand
         Source: SFA                                                 (Indexed at 2006=100)                                      Pt   Pd      Rh
                                                                     120
                                                                     115
                                                                     110
                                                                     105
                                                                     100
                                                                      95
                                                                      90
                                                                      85
                                                                      80
                                                                      75
                                                                      70
                                                                       2006            2007                   2008    2009   2010     2011        2012

                                                                        Source: SFA



                                                                                                                                                         53
Jewellery demand increasing in the Far East


                                                Shanghai Gold Exchange Turnover
                                       6                                                                  800

                                                                                                          700
                                       5
         Daily Average ('000 oz)




                                                                                                                Cumulative ('000 oz)
                                                                                                          600
                                       4
                                                                                                          500

                                       3                                                                  400

                                                                                                          300
                                       2
                                                                                                          200
                                       1
                                                                                                          100

                                   -                                                                      -
                                           Jan Feb Mar Apr May Jun      Jul Aug Sep Oct Nov Dec

                              2009 cumulative (right)   2008 cumulative (right)   2009 daily avg   2008 daily avg


         Source: Lonmin




                                              200 koz              - Price sensitive                                                   54
     Investment Demand
Global Platinum ETF Volume (oz)                          Pt PM Fixing Price, $/oz     Global Palladium ETF Volume (Oz)                       Pd PM Fixing Price, $/Oz

600 000                                                                       2 400   1 200 000                                                                           600
                   ETFS (Oz)
                   ZKB (Oz)                                                                               ETFS (Oz)
500 000            US$/oz                                                     2 100   1 000 000           ZKB (Oz)                                                        500
                                                                                                          US$/oz


400 000                                                                       1 800     800 000                                                                           400



300 000                                                                       1 500     600 000                                                                           300



200 000                                                                       1 200     400 000                                                                           200



100 000                                                                       900       200 000                                                                           100



     0                                                                        600            0                                                                            0
     Jul-07   Oct-07 Jan-08 Apr-08   Jul-08   Oct-08 Jan-09 Apr-09   Jul-09                  Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09




    •Pt - 200 koz              since start of year              •Behaviour Unknown                      •Pd - 200 koz             since start of year
    Source: Mitsui




                                                                                                                                                                     55
Conclusions

  •   Tentative signs of demand recovery
  •   Strong jewellery demand, particularly in Far East
  •   Strong investment demand
  •   PGMs integral in future of auto industry:
  • Short term remains difficult, with some initial signs of
    recovery
  • More positive medium to longer term outlook, as global
    economy recovers




                                                               56
Lonmin Plc

PGM Market Outlook




        Albert Jamieson
        Chief Commercial Officer
PGM Market Outlook

                • Gradual recovery in industrial demand in 2009-2010

  Lonmin        • Small surplus in 2009, balanced market in 2010
    View        • Demand rebound from 2011

                • Supply incapable of keeping up - market deficits
                ...expected in 2011 and 2012


                • Earlier demand upswing

Opportunities   • Supply surprising on the downside

                • Even tighter market & even higher prices


                                                                       58
Lonmin Plc

  Questions
Lonmin Plc

  Appendices
Dr Bob Farrauto - Biography
 Dr. Farrauto is a Research Fellow at the Corporate Research Laboratories of BASF Catalysts (formerly Engelhard) in Iselin,
 New Jersey, USA. His major responsibilities have included the development of advanced automobile emission control catalysts
 and catalysts for the chemical industry. He managed a research team that developed and commercialized diesel oxidation
 catalysts for the European, North American and Asian markets for passenger cars and heavy duty trucks.Currently he manages
 a research team developing new catalyst technology for the hydrogen economy including hydrogen refueling stations and fuel
 cells for stationary, portable power and vehicular applications. He is also Adjunct Professor in the Earth and Environmental
 Engineering Department of Columbia University, in the City of New York where he teaches courses and supervises research in
 catalysis.

 Dr Farrauto is the co-author of two books and he is also the author/coauthor of 90 publications and 50 U.S. Patents. During his
 career, Dr Farrauto has received a number of awards including the Ciapetta Lectureship Award for 2008: The North American
 Catalysis Society and the Catalysis and Reaction Engineering Award from the AICHE (American Institute of Chemical
 Engineers).

 BASF Catalysts, headquartered in New Jersey, is a global division of BASF SE, Ludwigshafen, Germany. In June 2006, BASF
 made the largest acquisition in its 143 year history, acquiring Engelhard Corporation, a company founded in 1908 in Newark
 under the stewardship of Charles Engelhard, one of the forerunners in the industrial use of precious metals. Engelhard was
 one of the revered names in catalysis — famous for, among other things, the invention of the catalytic converter — one of the
 most successful pollution control technologies of the 20th Century. Through a combination of ingenuity, hard work and unique
 knowledge of surface and materials science — primarily precious metals-based — Engelhard lead the introduction of this
 critically important device in time for the Clean Air Act of 1975. The result has been the elimination of literally millions of tons of
 pollutants from fuel-burning engines around the world. BASF Catalysts employs more than 5000, with 35 manufacturing sites
 worldwide. It is the first global division of BASF headquartered outside of Germany, with executive offices and a Global
 Research and Development Center for catalysis based in Iselin, NJ.



                                                                                                                                           61
James Courage - Biography

 James Courage joined PGI as CEO in 1996. Based in London, he is responsible for the PGI’s global
 jewellery development programmes in China, Japan, USA, Germany, Italy, India and the UK. Before
 he joined the PGI, James was at De Beers for a number of years.

 PGI is a non-profit organisation funded by leading South African platinum producers and refiners.
 Founded in 1975, PGI has been providing information, sales support and training to all levels of the
 jewellery trade for almost 30 years. In addition to its headquarters in London, PGI has offices in each
 of the world's major jewellery markets - China, Germany, India, Italy, Japan and the USA.

 Since the mid 1990s the platinum jewellery market has expanded rapidly. In 1995 PGI had offices in
 4 markets with Japan alone accounting for 81% of platinum jewellery off take. An office was
 established in China in 1997 and since then China has become the largest market accounting for
 50% of jewellery off take. Today, jewellery off take now accounts for almost 50% of total platinum
 mined yearly.




                                                                                                           62
BASF CATALYSTS BACK UP SLIDES




  FAILURE OF BASE METAL CATALYSTS
    FOR CATALYTIC CONVERTERS




                                    63
      Why Base Metal Oxide Catalysts Failed for
      Gasoline Converters: Thermal Stability
                       1975

                                          800oC/air
          CuO + CuCr2O3                               Cu2Cr2O4 + 1/2O2
          high activity                               low activity copper
          copper (Cu+2) oxides                        (Cu+1) oxides



                                     800oC/air
          CuO + Al2O3                                 CuAl2O4
          good activity                               poor activity
          copper supported on alumina                 undesirable reaction




Amer. Cer. Soc. (Bull) 54, No. 6 (1975)
                                                                             64
Why Base Metal Oxide Catalysts Failed
for Catalytic Converters: Sulfur Poisoning
                   1975

    CuO + SO2                                     CuSO4
    Active                                        Inactive/H2O soluble



    Co2O3 + SO2                                   Co2 (SO4) 3
    Active                                        Inactive/H2O soluble



    CuCr2O4+ SO2                                  CuCr2O4 - - - SO2
    Active                                        Poor Activity

    sulfur present in gasoline poisons activity

 J. Cat 33, (1973) 249

                                                                         65
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