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					     OPERATIONS REVIEW > FLOW CHART




                                      Mining




                                      Waste




                    Reef

                                                Reef          Converter matte
                                Concentrators
                                Milling
                                Flotation
                                Filtration




                Tailings


                                                               Smelters
                                                               Smelting
                                                               Converting
                                                               (ACP Plant)




                                       Slag
                                                       Sulphuric Acid




26
 OPERATIONS REVIEW > FLOW CHART




                                      Base Metals Refinery
                                      Leaching
                                      Electro-winning                        Nickel


                                                                             Copper


Sodium                               Ni / Cu / Co SO4                        Cobalt
sulphate                             Concentrate                             sulphate



                                                    M C Plant
                                                    Magnetic                 Platinum
                                                    concentrate
                                                    leaching

                                                                             Palladium



                                                                             Rhodium



                                                                             Ruthenium
                             Final
                       concentrate

                                                                             Iridium
                                           Precious Metals
                                           Refinery
                                           Dissolve
                                           Processing                        Gold
                                           Pure Metal Products

           Metallics




                                                            ANGLO PLATINUM BUSINESS REPORT 2003   27
     OPERATIONS REVIEW > LOCATION OF GROUP OPERATIONS




                                                           ‘We target to produce 2,9 million ounces
                                                                 of refined platinum in 2006’



          Above: Conveyor belt at the Rustenburg
                  Section’s UG2 Concentrator Plant




                                                     Location of Group Operations in South Africa


                                                                             Northern
                                                                             Limb                           Polokwane

                                                                             PPRust
                                                                                                       Leplats
                                                                                  Mokopane


                                                                                               Ga-Phasha
                                                            Limpopo Province
                                                                                                      Twickenham
                                                                                             Platinum Mine Project
                                 Thabazimbi
      Amandelbult Section                                                                                   Modikwa
                                                                                                      Platinum Mine
                                            Northam Platinum Mine
                                                                    Bela Bela
                                Union Section                                                               Der Brochen
                                                                                                                 Project


                                         North West
                                         Province
                             BRPM                                                                                                   Booysendal
                                                                                                                                    JV
      Styldrift
                                                                        Gauteng                       Mpumalanga
                                                                                                      Province
         Rustenburg
                                                                  Pretoria
                       Kroondal PSA Pandora JV                                                                                0       25       50
       Rustenburg Section                                                                         Witbank
                                                                                                                                  Kilometres


     > Legend
                   Bushveld Complex

         Upper Zone                     Critical Zone

         Main Zone                      Lower Zone
                      Group interests                                                               Right: Rosina Mahlatji prepares for work at
         Operation/Project                                                                                  PPRust where she is employed as a
                                                                                                                           wheel-dozer operator



28
            OPERATIONS REVIEW > INTRODUCTION

                                                              INTRODUCTION
                                                              Safety and health                               to work as far as the danger of lung
                                                              The safety and health of employees              disease is concerned. However, as an
                                                              remained management’s highest concern           expanding mining company the Group finds
                                                              during 2003. There was continuous               occasional cases of lung disease acquired
                                                              emphasis on the Behaviour Based Safety          as a consequence of prior exposure, which,
                                                              (BBS) process embarked upon in 2002,            once detected, are monitored. Affected
                                                              which yielded a considerable improvement        individuals are referred to national
                                                              in the reported lost-time injury frequency      social    security     and     workmen’s
                                                              rate (LTIFR) per 200 000 hours worked at        compensation bodies.
                                                              managed operations, as well as a decline in
                                                              the number of fatal injuries.                   In accordance with the changed
                                                                                                              compensation framework for noise-induced
                                                              The primary occupational risks are falls of     hearing     loss   (Compensation     for
                                                              ground, moving machinery, and materials         Occupational Injuries and Disease Act,
                                                              handling.                                       Instruction No. 171) all employees were
                                                                                                              base-lined for hearing by the statutory
                                                              The level of safety-related expenditure per     deadline of 16 November 2003.
                                                              ton milled increased by some 20% at Anglo
                                                              Platinum’s mines in 2003. As well as the        HIV/AIDS remains a significant operational
                                                              BBS process, with its concomitant increase      challenge. Anglo Platinum is well equipped
                                                              in training personnel, support and              to manage the impact of this pandemic at
                                                              equipment standards were revised to             both the individual and the Group level.
                                                              improve the safety of employees.                The HIV/AIDS strategy is reviewed
                                                                                                              annually in terms of its effectiveness, and
                                                              The Group LTIFR improved by 42%, from 1,2       the HIV/AIDS programme has been
                                                              in 2002 to 0,7 in 2003. All operations          extended to include the delivery of
                                                              showed an improvement, with the exception       antiretroviral therapy (ART) to employees
                                                              of Waterval Smelter, (which had two fatal       and, together with the support of the State-
                                                              accidents). The fatal injury frequency rate     led programmes, will provide employees
                                                              (FIFR) per 200 000 man-hours was flat at        with treatment options. In addition, steps
                                                              0,03. All operations improved their FIFR,       are being taken to help prevent the
                                                              except Waterval Smelter and Union Section.      development of resistance to medication,
                                                              At Union Section, a promising downward          an increasingly important issue as more
                                                              trend in the LTIFR was undermined by five       people take advantage of the availability
                     Above: Crushing section at Rustenburg    fatal accidents; all support standards were     of ART.
                     Section. Ben Ramatla, Senior Machinery   subsequently      revised    and    training
             Inspector at Rustenburg UG2 Plant, checking      programmes were intensified.                    A full discussion on safety and health
                                                                                                              performance and the various initiatives
                 vibration levels and doing an oil analysis
                                                              Despite the overall improvement in safety       implemented by the Group may be found in
                                                              measures, the number of fatal accidents         the      accompanying       Sustainable
                                                              was only slightly lower in 2003 than in         Development Report.
                                                              2002. Tragically, 24 employees died at
                                                              Anglo Platinum’s managed operations             Mining operations
                                                              during 2003, and a further three                Total platinum delivered to the smelters,
                                                              employees died at Modikwa, a non-               including platinum purchased from the
                                                              managed operation. The Board and                Modikwa joint venture partners, increased
                                                              management extend their condolences to          by 8%, an additional 175 000 ounces
                                                              the families and colleagues of those who        refined platinum at standard recoveries.
                                                              have died and reaffirm the Group’s              The increased output is mainly attributable
            > Lost-time injury frequency rate (LTIFR)         commitment towards the goal of creating a       to the ramp-up operations: Rustenburg
                                                   Managed    fatality-free work environment.                 UG2, Modikwa and BRPM.
     2000                               3,75


     2001                     2,55                            It is management’s firm belief that             Steady-state mines
                                                              continued focus on the BBS process will in      The total volume from steady-state
     2002        1,24
                                                              due course deliver the mindset change           operations was in line with that for
     2003     0,73                                            required to reduce the number of injuries       2002 at 1,83 million equivalent refined
                                                              and fatal accidents at all operations. In       platinum ounces. This is a notable
            > Fatal injury frequency rate (FIFR)              2004, there will be particular focus on falls   achievement considering the ongoing
                                                    Managed   of ground prevention training.                  replacement of Merensky ore with lower-
     2000                       0,041                                                                         grade UG2 ore at Rustenburg Section,
                                                              At all the Group’s operations, there is no      Union Section, and Amandelbult Section.
     2001               0,035
                                                              significant risk of exposure to either          The proportion of UG2 tons milled
     2002               0,031
                                                              asbestos or silica dusts, making them           increased from 28% of the total in 2002 to
     2003             0,026                                   comparatively safe environments in which        32% in 2003.




30
OPERATIONS REVIEW > INTRODUCTION



Production increased at Union Section and      expenditure in maintaining infrastructure
PPRust. Union Section reaped the benefits      and replacing depleted mining reserves.
of the UG2 project commissioned in 2002,       Notwithstanding the strength of the rand
with additional production from the new        against the US dollar during 2003,
declines and increased plant capacity from     operating margins at steady-state
the extension to the UG2 Plant. As well as     operations were robust at an average of
an increase in underground production          34,2%. Combined, these operations
Union Section used its available plant         generated 95,8% of the Group’s operating
capacity to process opencast and tailings      contribution in 2003.
material and its equivalent refined platinum
production rose by 41 500 ounces. PPRust       Ramp-up mines
successfully brought the Zwartfontein          Equivalent refined platinum production
South Pit into production, resulting in        from ramp-up operations (including
improved mill feed grades and an increase      purchases from Modikwa) amounted to            Above: Modikwa Platinum Mine
in equivalent refined platinum production      529 500 ounces in 2003, compared with
of 27 100 ounces.                              349 900 ounces in 2002, an increase of
                                               179 600 ounces (51,3%).
At Rustenburg Section, replacement of
Merensky with UG2 production continued         BRPM steadily improved its underground
during 2003. Equivalent refined platinum       production efficiencies and volumes during
production from steady-state shafts fell by    2003, with the result that far less surface
40 200 ounces to 571 300 ounces,               material was milled. The higher grade and
reflecting a decrease in available Merensky    recoveries      associated     with     the
reserves.                                      underground ore largely offset higher
                                               mining costs. At the end of the year, most
Amandelbult focused on optimizing its new      production measures were substantially in
UG2 mechanized sections during 2003,           line with design parameters, and from
and on improving its ore reserves. The         2004 the mine will be reported as a
mine milled 6 956 000 tons in 2003,            steady-state     operation.    Full   PGM
slightly lower than in 2002. Production of     production volumes and optimum cost
equivalent refined platinum fell by 32 900     efficiency will be achieved through
ounces to pre-2002 levels because of           incremental grade improvement.
lower grades and recoveries resulting from
increased UG2 opencast production, the         The Rustenburg UG2 Project achieved a
substitution of Merensky with UG2              51% increase in tons milled in 2003, and
production, and a shift in Merensky            equivalent refined platinum ounces
production from No. 1 Shaft to No. 2           increased by 58,3% because of more tons
Shaft, which has a slightly lower grade.       at an improved grade at the Waterval mine.
                                               The new plant exceeded design throughput
Leplats’ production in 2003 was steady at      for the year. Despite the rapid build-up,
105 000 equivalent refined platinum            production from this operation did not
ounces.                                        achieve expectations owing to limited face
                                               availability. Accelerated development plans
Cash on-mine costs per ton milled              and mined-grade enhancement initiatives
increased by 8,6% from R233 per ton in         are in place, and the ore-sorting plant is
2002 to R253 per ton in 2003. This is          being commissioned to further improve the
higher than official inflation because of      mill feed grade and make better use of the
high increases in the costs of labour and      available milling capacity.
steel, as well as increased safety-related
expenditure. The lower grade and recovery      Modikwa completed its first full year
associated with higher UG2 and surface         of    production   in   2003,     having
material resulted in a 12% increase in cash    commenced operations in the second half
on-mine costs per equivalent refined           of 2002. Square metre production
platinum ounce.                                increased steadily during the year
                                               despite difficult geological conditions,
In order to minimize the rate of decline of    which hampered development rates and
the steady-state production base, all          the    creation    of   ore    reserves.
steady-state operations ensured that they      Accelerated development at the mine
maintained their immediately available ore     continues and the mine is expected to
reserves and invested the appropriate          be close to design parameters by the end
amount of working cost and capital             of 2004.




                                                                                             ANGLO PLATINUM BUSINESS REPORT 2003   31
     OPERATIONS REVIEW > INTRODUCTION



                                                   Processing operations                            decision to slow down the implementation
                                                   The key feature of the performance of            of a number of mining projects by between
                                                   process operations in 2003 was the               one and three years, and as a result refined
                                                   significant increase in smelting capacity put    platinum production is now targeted to
                                                   in place with the commissioning of the           reach 2,9 million ounces in 2006.
                                                   Polokwane Smelter, the Anglo Platinum
                                                   Converting Process (ACP) Plant, and the          Progress on the major projects under
                                                   Waterval        Slag-cleaning       Furnace.     development is discussed on pages 45 to
                                                   Unfortunately, this capacity brings with it a    50 of this Report. Two new projects
                                                   higher level of operating costs that cannot      announced during the year are the Pooling
                                                   be absorbed by current levels of                 and Sharing Agreement (PSA) with
                                                   throughput; consequently, unit costs of          Aquarius Platinum (South Africa), a mid-
                                                   smelting will fall as increased volumes          sized PGM operation, the holding company
     Above: UG2 concentrator, Rustenburg Section   from the expansion programme are                 of which is listed on the Australian
                                                   achieved. Nonetheless, the capacity is now       and the London Stock Exchanges, and
                                                   in place and the new plants are operating        the Unki project, being undertaken
                                                   well. Polokwane Smelter has already              with Anglo American Corporation
                                                   achieved design recoveries and the ACP is        Zimbabwe Limited.
                                                   steadily increasing throughput while
                                                   significantly reducing sulphur dioxide           In the PSA with Aquarius Platinum (South
                                                   emission levels.                                 Africa), some mining assets were pooled
                                                                                                    with effect from November 2003 and the
                                                   The base metals and precious metals              parties will share the proceeds. The project
                                                   refineries both delivered high-quality           will produce an annual 280 000 ounces of
                                                   technical performances in 2003, and              refined platinum at full production in 2006.
                                                   contained costs well.                            From 2005, Anglo Platinum will also treat
                                                                                                    concentrate from the venture.
                                                   The commissioning activity caused a
                                                   temporary build-up of some 160 000               The Unki project entails the development
                                                   equivalent refined platinum ounces at the        of a mine on the Zimbabwean Great Dyke,
                                                   end of June, which was all released by the       which will, at peak production, produce
                                                   end of the year. Permanent lock-up of            58 000 ounces of refined platinum
                                                   metal in 2003 due to the new plants in           per year.
                                                   operation and higher throughput amounted
                                                   to some 52 700 equivalent refined                Human resources
                                                   platinum ounces.                                 Human resource development (HRD)
                                                                                                    remains a core component of the
                                                   The treatment of purchased concentrate           Group’s strategy and the Group’s human
                                                   has become an important part of the              capital development needs are continually
                                                   Process Division’s business. More material       integrated within the business plan.
                                                   will be purchased in future as joint venture     During 2003, the Group focused on
                                                   output rises. Combined with the increase in      aligning HRD with Group strategy and
                                                   output from the Group’s mines, this may          optimizing the business alignment of the
                                                   result in temporary stock build-ups. During      Anglo Platinum Development Centre
                                                   such periods, the Group will continue to         (ADC). The outcomes-based education,
                                                   consider toll-refining and the sale of metal     training, and development methodology
                                                   in near-refined product. Such sale of metal      was initiated.
                                                   or toll-refined product is incorporated in the
                                                   definition of refined product.                   The main external development was
                                                                                                    the preparation of the Department of
                                                   The processing operations are well               Minerals and Energy’s requirements for
                                                   positioned to meet the Group’s                   conducting falls of ground competence
                                                   requirements in 2004.                            assessments that are aligned with the
                                                                                                    National Unit Standards.
                                                   Projects
                                                   Towards the end of the financial year, and       The Group succeeded for the third
                                                   in view of the continuing strength of the        successive year in reclaiming its full Skills
                                                   South African currency and lower rand            Levy Fund remittance from the Mining
                                                   prices for the Group’s basket of metals          Qualifications Authority. During 2003,
                                                   sold, the Group undertook a critical review      Anglo Platinum developed a record number
                                                   of its previously announced expansion plan       of graduates and trainees, a total of 520.
                                                   to produce at a rate of 3,5 million ounces
                                                   of refined platinum per year by the end of       The Group continued to enjoy labour
                                                   2006. The outcome of this review was a           stability through the maintenance of




32
OPERATIONS REVIEW > INTRODUCTION



positive relationships with its unions          Mining cost inflation over the last few
and associations.                               years has been considerably higher than
                                                core inflation. The cumulative effect of
Capital expenditure                             this, in combination with reduced
Capital expenditure for the year rose by        revenues caused by the strong rand
23,9% to R7,42 billion. Of this, R3,95          and lower overall PGM prices, is that
billion was spent on maintaining and            operating margins have been severely
replacing production, R3,27 billion was         eroded. Clearly the Group cannot continue
spent on expansion projects, and interest       to accept cost increases greater than
of R200,5 million was capitalized.              the rate of inflation and consequently
                                                management has initiated a Group-wide
Outlook for 2004                                cost-cutting and restructuring initiative.
Anglo Platinum’s refined platinum               The short-term target of this initiative
production, net of an expected increase in      is to restrict unit cash cost increases in
the refining pipeline, is planned to increase   2004 to the official consumer price
to approximately 2,45 million ounces in         inflation rate.
2004. At steady-state operations, every
effort will be made to optimize existing        In light of current market circumstances and
available Merensky in preference to UG2         in line with the revised expansion
ore reserves, which should result in a          programme, capital expenditure will
slower rate of replacement of Merensky by       continue to be deferred without adversely       Below: The concentrator plant at Amandelbult
UG2 production than originally planned.         affecting planned production levels.            Section




                                                                                               ANGLO PLATINUM BUSINESS REPORT 2003             33

				
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