| |
| |
| Committed to the Mineral & Petroleum Resources Development Act |
| Anglo Platinum is fully committed to the Mineral and
Petroleum Resources Development Act (the Act) and
the mining charter and to achieving the associated
sustainable economic transformation. This process
started in 2000 with the sale of 22.5% interest in
Northam Platinum Limited to Mvela Resources Limited
and continued in 2001 with the establishment of a
50:50 joint venture with the African Rainbow Minerals
at Modikwa Mine. Subsequent transactions included
the 50:50 joint venture with the Royal Bafokeng Nation
at Bafokeng-Rasimone Mine, the Pandora Joint Venture
with the Bapo Ba Mogale traditional community and
Mvela Resources each holding a 7.5% interest, the Ga-
Phasha 50:50 Joint Venture with Anooraq Resources,
the Booysendal 50:50 Joint Venture with Khumama
Platinum and the sale of a 15% interest in Union
Section Mine to the Bakgatla-Ba-Kgafela (Bakgatla)
traditional community. Anglo Platinum further disposed
of a 55% interest of its Rooderand mineral rights to
and set up an exploration joint venture on its
Magazynskraal property with the Bakgatla. |
| |
| In July 2006, a joint review of progress was conducted
by Anglo Platinum and the Department of Minerals
(DME). This highlighted the process required to
progress Anglo Platinum's conversion of its 'old-order
mineral rights' to 'new-order mineral rights'. In 2006,
19 Anglo Platinum prospecting rights were converted
from old order to new order. In 2007, Anglo Platinum
announced the historic BEE transactions on
4 September that envisaged the creation of two major
HDSA-managed and controlled PGM producers with
significant broad-based empowerment, which included
communities, women and employees. The details of
these transactions are discussed below. |
|
| |
| MVELA RESOURCES AND ANOORAQ
TRANSACTIONS |
Anglo Platinum, Anooraq Resources Corporation
(Anooraq) and Mvelaphanda Resources jointly
announced transactions that, when successfully
concluded, will result in the creation of two major
historically disadvantaged South African (HDSA)
managed and controlled South African platinum group
metal producers, which will have critical mass and
significant growth potential.
In terms of the proposed transactions, the Anglo Platinum
Group will sell an effective 51% of Lebowa Platinum Mine
and an effective 1% of the Ga-Phasha project for a total
consideration of R3.6 billion to Anooraq. Following this
transaction, Anooraq, the current owner of 50% of Ga-
Phasha, will own an effective 51% of Lebowa and
Ga-Phasha through a newly created entity. Mvelaphanda
Resources will purchase the Anglo Platinum Group's 50%
interest in the Booysendal project and 22.4% direct
interest in Northam for a total consideration of R4 billion.
Mvelaphanda Resources currently owns the other 50%
interest in Booysendal. Northam will acquire 100% of
Booysendal from Northam in exchange for shares.
Anglo Platinum and Anooraq have also agreed in
principle to transfer, in due course, their respective 50%
interests in the Boikgantsho and Kwanda Joint Venture
projects into the newly created entity.
The sale by Anglo Platinum of equity holdings, interests
in operating mines, and interests in development
projects, inclusive of extensive mineral reserves and
resources, will result in Anooraq Resources, through the
newly created vehicle, and Mvela Resources, through
Northam, controlling the third and fifth largest PGM
resource bases in South Africa respectively. This signifies
a meaningful and sustainable transformation of the
country's platinum industry. |
| |
| NORTHAM PLATINUM LIMITED
(NORTHAM) |
| In August 2000, Anglo Platinum sold a 17.5% interest in
Northam Platinum Limited to Mvelaphanda Resources,
an HDSA company, and facilitated the sale of an
additional 5% interest from the Rembrandt Group
(Remgro) to Mvelaphanda, resulting in Mvelaphanda
holding a 22.5% interest in Northam. As at
31 December 2007, Anglo Platinum's beneficial
shareholding in Northam was 53,103 million shares,
representing 22.4% of Northam's issued share capital,
and Mvelaphanda's beneficial shareholding in Northam
was 51,738 million shares, representing 21.8% of
Northam's issued share capital. The successful conclusion
of the BEE transactions announced on 4 September
2007 would result in Anglo Platinum selling its remaining
interest in Northam to Mvelaphanda. |
| |
| MODIKWA PLATINUM MINE |
| In August 2001, Rustenburg Platinum Mines (RPM) and
the ARM Mining Consortium Limited concluded a joint
venture, known as the Modikwa Platinum Joint Venture,
to exploit the mineral resource of four contiguous
properties on the Eastern Limb of the Bushveld
Complex: Driekop, Maandagshoek, Onverwacht and
Winterveld. The mine was designed to produce
200,000 tonnes of UG2 ore per month using two shafts
at an initial capital cost of some R1.35 billion. The mine
plans to build up to 240,000 tonnes per month with an
annual production of 160,000 ounces of platinum. |
| |
| PANDORA JOINT VENTURE |
The Pandora Joint Venture project, which became
unconditional in April 2004, is located some ten
kilometres west of the town of Brits in North West
province. The joint venture comprises both Merensky
and UG2 reefs. The participants to the joint venture are
Rustenburg Platinum Mines (42.5%), Eastern Platinum
Limited, a subsidiary of Lonmin PLC (42.5%), Bapo Ba Mogale Tribe (7.5%) and Mvelaphanda Resources
Limited (7.5%).
The synergies of working together on the project are
expected to realise significant capital cost savings, and
this has facilitated an immediate tonnage build-up by
using existing Lonmin Mine access and infrastructure.
Pandora will mine the UG2 reef with a resource
estimated at 160 million tonnes. The mining operation
will have an expected life of 30 years. |
| |
| BAFOKENG-RASIMONE PLATINUM MINE
AND STYLDRIFT JOINT VENTURE |
| On 12 August 2002, RPM and the Royal Bafokeng
Nation announced that agreement had been reached
to form a 50:50 joint venture to mine the Boschkoppie
and Styldrift farms owned by Anglo Platinum and Royal
Bafokeng Nation respectively, near Rustenburg in the
North West province. In terms of the joint venture,
which became unconditional in February 2004, RPM
and Royal Bafokeng Resources, a wholly-owned subsidiary of the Royal Bafokeng Nation, will co-operate
as equal participants and intend to use the existing
infrastructure at BRPM to gain access to the farm
Styldrift. Additional infrastructure, including a new
vertical shaft and a 230,000 tonnes per month
concentrator, will allow the joint venture to expand
production by 2.76 million tonnes per annum. |
|
 The previously announced Styldrift expansion project
has been re-scoped to align extraction with the
complex geological structure identified as a result of
further drilling and the interpretation of the seismic
survey. Feasibility work continued during 2007 and will
be evaluated in mid-2008. |
| A view of BRPM |
|
| BOOYSENDAL JOINT VENTURE |
| In July 2003, Anglo Platinum and Khumama Platinum
(Pty) Limited (Khumama), an HDSA consortium,
announced their agreement in principle to establish a
50:50 joint venture to develop the Booysendal project
on the Eastern Limb of the Bushveld Complex in
Mpumalanga province. When finalised this joint venture
would have included the farms Buttonshope 51JT,
Kliprivier 73JT, Draaikraal 48JT, Uysedoorns 47JT,
Booysendal 43JT, Pietersburg 44JT, a portion of Der
Brochen 7JT and a portion of Hebron 5JT contributed
by Rustenburg Platinum Mines and the farms Sheeprun
50JT and Johannesburg 45JT contributed by the
Department of Minerals and Energy on behalf of
Khumama. Khumama was subsequently sold to
Mvelaphanda. The successful conclusion of the BEE
transactions announced in September 2007 would
result in Anglo Platinum selling its remaining 50%
interest in Booysendal to Mvelaphanda. |
| |
| MOTOTOLO JOINT VENTURE |
In July 2005, Anglo Platinum and Xstrata South Africa
(Pty) Limited (Xstrata) concluded the Mototolo joint
venture, situated at the northern end of the Der Brochen
valley, to exploit the PGM resources on the farms
Richmond 370 KT (contributed by Anglo Platinum)
and Thorncliffe 374 KT (contributed by Xstrata). On
22 February 2006, the joint venture was reconstituted
through the replacement of Xstrata by the XK Platinum
Partnership. The XK Platinum Partnership consists of Xstrata and Kagiso Platinum Venture (Pty) Limited
(Kagiso), a BEE company, who hold an effective 37% and
13% participation interest respectively in Mototolo joint
venture.
The joint venture is currently an operating mine,
treating UG2 at 200 ktpm (100 ktpm from each of the
two shafts, Borwa and Lebowa) and then sells the
concentrate produced to Anglo Platinum for smelting
and refining. |
| |
| GA-PHASHA JOINT VENTURE |
| In August 2004, Anglo Platinum signed a joint venture
agreement with Plateau Resources (Pty) Limited
(Plateau), a wholly-owned South African subsidiary of
Anooraq, to develop the Ga-Phasha PGM project.
Plateau Resources replaced Pelawan Investments (Pty)
Limited as Anglo Platinum's HDSA joint venture partner
on the project as a result of a reverse takeover of
Anooraq by Pelawan. The joint venture covers the
farms Klipfontein 465KS and Paschaskraal 466KS,
contributed by Anglo Platinum, and the farms Avoca
472KS and De Kamp 507KS contributed by the
Department of Minerals and Energy on behalf of
Pelawan. The parties agreed to continue with studies to
continue with the development of the project and have
appointed an independent project manager to conduct
a pre-feasibility study. Anglo Platinum has loaned
R70 million to Plateau to assist with funding the
bankable feasibility study. The successful conclusion of
the BEE transactions announced in September 2007
would result in Anglo Platinum selling an additional 1%
interest in Ga-Phasha to Anooraq to give Anooraq
control of the asset, and Anglo Platinum will remain a
49% shareholder in Ga-Phasha. |
| |
| ELANDSFONTEIN |
| In October 2005, Anglo Platinum signed an agreement
with Eland Platinum Mines (Pty) Limited for the disposal
of its mineral and surface rights on the property
Elandsfontein 44JQ for a cash consideration. The
Ngazana Consortium, led by Dr Penuell Maduna, and
incorporating prominent businesswomen and other
historically disadvantaged persons, holds an
unencumbered 26% interest in Eland Platinum Mines. In addition to their unencumbered beneficial interest,
historically disadvantaged persons control the board of
Eland Platinum Mines. Eland Patinum Holdings Limited,
which held a further 65% of Eland Platinum Mines and
was listed on the JSE Limited, was acquired by Xstrata
South Africa (Pty) Limited in December 2007. In June
2007, Anglo Platinum entered into an agreement with
Eland Platinum Mines to purchase the concentrate
produced from the mine. |
| |
| UNION SECTION, ROODERAND AND
MAGAZYNSKRAAL |
Union Section is an existing Anglo Platinum operation
on the Western Limb of the Bushveld Complex, located
to the north of the Pilanesberg. Portion two of
Rooderand 46JQ and Magazynskraal 3JQ are earlystage
assets to the south-west of Union Section.
Anglo Platinum has concluded an agreement with the
Bakgatla-Ba-Kgafela traditional community (Bakgatla),
which is the local community in the region and which
provides approximately 47% of Union Section's
workforce.
The transaction concluded in November 2006 saw
Anglo Platinum converting the royalty agreement it had
with the Bakgatla on portion two of Spitskop 410JQ
into a participation interest in Union Section and then
the Bakgatla purchasing a further participation interest
in Union Section for R420 million in cash as well as an
undertaking to procure the use of various surface rights
required by the mine. The total stake acquired is 15%
of Union Section's mining and concentrating business.
Anglo Platinum further disposed of a 55% interest in
the mineral rights in respect of Rooderand to the
Bakgatla and advanced a loan, secured by the Bakgatla's
interest in Rooderand, which has been used to settle
land debt and fund community projects. On
Magazynskraal, an exploration joint venture has been
established, whereby the Bakgatla (potentially with a
suitably qualified partner) will procure the funding for
and completion of the necessary exploration and
feasibility work required to compile a bankable feasibility
study in return for a majority stake in the asset. Should a mine be developed, Anglo Platinum will retain the
right to increase its stake in the asset contributing a
disproportionate share of the development capital
expenditure required.
In respect of the Union Section transaction, Anglo
Platinum will purchase the Bakgatla's 15% share of the
concentrate produced by Union Section, and in respect
of the Rooderand and Magazynskraal transactions,
Anglo Platinum retains the right to purchase the
concentrate arising from these projects at marketrelated
terms. |
| |
| CHROME AND TAILINGS PROJECTS |
| Siyanda Chrome Investments (Pty) Limited, an HDSA
controlled company, owns 26% of the chromite
recovery business at Union Section. Platinum Mile
Resources (Pty) Limited, which is controlled by
Mvelaphanda Holdings (Pty) Limited, owns the platinum
tailings retreatment business at Rustenburg. Kilken
Platinum (Pty) Limited and Imbani Minerals, an HDSAcontrolled
company, are in a 70:30 joint venture and
own the platinum tailings retreatment business at
Amandelbult. |
| |
| PROSPECTING JOINT VENTURES |
Anglo Platinum has a number of South African
prospecting projects, either on its own or with joint
venture partners, in respect of which it is applying for
either conversion of its existing prospecting permits or
has applied for new prospecting rights.
The prospecting projects that have already been
concluded, which incorporate HDSA partners, include
the Boikgantsho and Kwanda joint ventures with
Anooraq in the Potgietersrust area and the Western
Bushveld Joint Venture with Platinum Group Metal RSA
(Pty) Limited (37%) and Africa Wide Mineral Prospecting
and Exploration (Pty) Limited, a wholly-owned subsidiary
of Wesizwe Platinum Limited (26%). The Western
Bushveld Joint Venture is expected to complete its
bankable feasibility study for its first project area by
mid-2008. |
|
|
|
|
|
