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MARULA PLATINUMMARULA PLATINUMAnalyst Visit Analyst Visit –– Tuesday, 5 October 2004Tuesday, 5 October 2004
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AgendaAgenda
• Introduction
• Geology
• Mining
• Mineral Processing
• Safety
• Environment
• Infrastructure
• Social Involvement
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INTRODUCTIONINTRODUCTION
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Location mapLocation map
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BackgroundBackground
• Acquired all assets of Platexco(Winnaarshoek) – R950 million in Dec 2000
• Exchanged Hendriksplaats for Clapham and portion of Forest Hill
• Sublease of portion of Driekop
• 20% Black Economic Empowerment
• Phase 1 approved in June 2002
Hendriksplaats
Maandagshoek
Clapham
Twickenham
Hackney Forest Hill
R37Road
Driekop
Winnaarshoek
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Capital cost (Capital cost (RmRm))
• Phase 1 FY04
Mining and infrastructure 765
Process plant 382
indirect costs 203
Total 1 350
• Total revised mining plan + 1850
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The owners of Marula PlatinumThe owners of Marula Platinum
Enables sustainable benefit to flow to community over life of mine and beyond
5Marula Community Trust
Long-term, committed, empowerment investor5Business consortium
BEE with proven sustainability and mining expertise. Will have strategic input into Marula Platinum
10MmakauMining
Technical, managerial, financial and operational support and expertise. Reputation allows capital to be raised for Marula Platinum and BEE owners
80Implats
Role%Owner
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Project programme Project programme
August 2002 Construction started
November 2003 Commissioning started
February 2004 First concentrate shipped
June 2004 Produced 13 280 oz Pt (in
concentrate) for financial year
June 2006 125 000 oz Pt in concentrate
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GEOLOGYGEOLOGY
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GeologyGeology
MerenskyReef
400m
UG2 Reef
Dyke
Generalised section of geology
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Dip variation planDip variation plan
• Depicts structural interpretation
• Dip steeper in shallow/slump area
• Ave 13 degrees
• Detailed variability influenced by borehole density
• Variability expected in “clean areas”
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UG2 horizonUG2 horizon
UG2 Main Chrome
UG2 Pegmatoid
UG2 Pyroxenite
UL1
UL2
20 cm
50 cm
60 cm
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Marula UG2 Marula UG2 –– PGE splitsPGE splits
Pt37%
Rh8%
Ru11%
Pd40%
Au1%Ir
3%
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Reserves and resourcesReserves and resources
• Mineral Reserve :
UG2 41.3 Mt
• Mineral Resource:
Merensky and UG2 66.6 Mt
• Phase 1 UG2 Reef
(Merensky mined at a later stage)
• Evaluation drilling continuing on Merensky
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MININGMINING
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Mine plan Mine plan –– phase onephase one
• Original mining based on trackless Bord and Pillar
• Two decline accessesClaphamDriekop
• Mine UG2 to a depth of 600 metres• 233 000 ROM tonnes per month
(103 000 oz Pt per annum)• Infrastructure designed on a modular basis to
facilitate future expansion• Life-of-mine of 22 years
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Typical Typical bordbord--andand--pillar methodpillar method
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Stope layoutStope layout
Dip @ +18°Dip @ 9°
Original layout
1.6m14m
WasteDip @ 5°
3.1mTypical
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Effect of reef dip on dilutionEffect of reef dip on dilution
Reef Dip vs Additional % Dilution(Bord and Pillar layout)
0%
10%
20%
30%
40%
50%
60%
70%
10 12 14 16 18 20 22 24 26
Dip (degrees)
% A
dditi
onal
Dilu
tion
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Revised mine planRevised mine plan
• Dips
• High dilution
• Poor equipment efficiencies
• Poor extraction rates at depth
65% at 500m
50% with geological losses
• Low-resource utilization
• High cost per ounce
• Long ounce buildup profile
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SemiSemi--mechanisedmechanised layoutlayout
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SemiSemi--mechanisedmechanised layoutlayout
Panel 1
Panel 2Typical section showing Trackless drive with conventional panel
Drive 2
Drive 1
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Breast mining layoutBreast mining layout
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Mining methods evaluatedMining methods evaluated
• Bord and pillar (1.6 or 1.8m)
• Semi-mechanised (3 or 2 shifts)
• On Reef Breast
• On Reef Dip
• Off Reef Breast (conveyors or trucks)
• Off Reef Dip(conveyors or trucks)
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Grade comparisonGrade comparison
5.02 5.02
3.83
3.383.76
0.00
1.00
2.00
3.00
4.00
5.00
6.00
Off Reef Breast SingleConveyor
Off Reef Breast Singletruck
Semi Mechanised Bord and pillar 1.8 Bord and pillar 1.6
Mining methods
g/t
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Cost per Cost per tonnetonne comparisoncomparison
160 162
148
129 129
0
20
40
60
80
100
120
140
160
180
Off Reef Breast SingleConveyor
Off Reef Breast Singletruck
Semi Mechanised Bord and pillar 1.8 Bord and pillar 1.6
Mining methods
Rand
per
tonn
e
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Cost per ounce comparisonCost per ounce comparison
1,067 1,078
1,2921,369
1,231
0
200
400
600
800
1,000
1,200
1,400
1,600
Off Reef Breast SingleConveyor
Off Reef Breast Singletruck
Semi Mechanised Bord and pillar 1.8 Bord and pillar 1.6
Mining methods
Rand
per
oun
ce
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Mining method selected Mining method selected -- conclusionconclusion
• Conventional breast stoping method chosen for the Life Of Mine Plan
• Footwall infrastructure and development
• Conventional stoping and strike development to be done in house
• Main development outsourced
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The way forwardThe way forward
• Transitional phase to full production
• Detailed design work in progress
• Initiated footwall development
• EPCM contract to manage process
• Maintain ounce profile from current workings
• Maximise semi-mechanised operations
• Opportunities for breast mining on-reef
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Best practiceBest practice
• Use of DDT drill jigs for stope and ASG drilling
• Support drilling with Auto drill
• Support with hydrabolts on face and pre-stressed stick support
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DDT drill jigs DDT drill jigs -- objectivesobjectives
• To reduce the physical effort
• Improved safety through face support in the form of roof-bolts
• Improving the quality of drilling
• Improving the face advance
• Improved hanging wall control
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Support drilling inSupport drilling in--stopestope
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HydraboltHydrabolt
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Installed Installed hydrabolthydrabolt supportsupport
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PrePre--stressed stick supportstressed stick support
JACKPOT
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Production outputProduction output
• Panel length 24,0m
• Face advance 22,0m
• Square meters/panel 528 m²
• Labour required 11
RDO 4
Winch operator 2
TBR/support 2
LHD 1
Miner assistant 1
PTV 1
• Efficiency 48 m²/man
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MINERAL MINERAL PROCESSINGPROCESSING
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Mineral processing overviewMineral processing overview
• Design based on Mintek test work data
• Overall metallurgical recovery set at 82% of ROM
grades (after mine call factor and scalping)
• Designed on a modular basis to facilitate
future expansion
• Final concentrate transported to Mineral
Processes
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Commissioning datesCommissioning dates
• Plant commissioned March 2004
• Plant operating as per design expectations
• Completed on time and below budget
• DMS plant by-passed
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Tonnage profileTonnage profile
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
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Ounces profileOunces profile
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
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TonnesTonnes milledmilled
050
100150
200250
300350
B/Plan 74 71 81 87 102 105 226
Actual 120 88 84 292
Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 YTD
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PGM % recoveryPGM % recovery
70
75
80
85
90
95
B/Plan 79 79 80 81 80 80 79
Actual 92 93 91 92
Jul-04 Aug-04
Sep-04
Oct-04 Nov-04 Dec-04 YTD
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SAFETYSAFETY
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Safety statisticsSafety statistics
00.5
11.5
22.5
33.5
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FY04 FY05
Lost Time Injury Frequency Rate
3,87
2,43
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Safety initiativesSafety initiatives
• 5 Platinum rules established
• Implemented the Meerkat system
• Training Centre underground to train workers in working environment
• Road safety awareness through propoganda and photographs
• Revised support methods
• Fall of ground campaign ‘DROP THAT ROCK BEFORE IT DROPS YOU’
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ENVIRONMENTENVIRONMENT
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EnvironmentEnvironment
• Water permit application submitted
• Sewerage plant in full operation
• Water treatment plant in full operation
• Slimes dam operational
• Water Management Committee established
• Ground water monitoring with SRK
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INFRASTRUCTUREINFRASTRUCTURE
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InfrastructureInfrastructure
• Bulk water supply
• Power supply
• Bio-filter sewage treatment works
• Central offices, workshops, ablutions, training facilities and clinic
• Offices, change house and lamp room at each shaft
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LebaleloLebalelo raw water damraw water dam
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EskomEskom powerpower
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SOCIAL SOCIAL INVOLVEMENTINVOLVEMENT
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HlahlanaHlahlana primary schoolprimary school
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Empowerment modelEmpowerment model
BEE Ownership
Employment Equity
Elements of empowerment
Training Social/SMEDevelopment
Mmakau Community
Affirmative Procurement
Trust Local direct stakeholding
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Marula Community trustMarula Community trust
• Trust formed 5 August 2004 after 14 months of negotiations with all stakeholders
• R1m cheque presented by Impala to the Marula Community Trust
• 11 Trustees have been appointed to represent the relevant stakeholders
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EmploymentEmployment
• 50.4% of workforce currently made up of local labour
• Committed to the Mining Charter, Social and Labour Plan and Implats’ submission on Employment Equity Act
• 10 local miners trained and achieved blasting certificates
• 13 local apprentices qualified• 4 local bursary students currently
at university
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TrainingTraining
• Transfer of skills to the local community
• Skills training includes
Construction
Mining
Engineering
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Social involvementSocial involvement
• Preference to local contractors and suppliers
Building trades
Security
Fencing
Catering
Transport
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Mining Charter Categories Mining Charter Categories -- procurementprocurement
Black Empowered23%
Black Owned22%
Black Influenced55%
R49m 1 July 03 – 30 June04
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THANK YOUTHANK YOU
