| Processing operations |
| Anglo Platinum's processing operations include
concentrator plants which mill ore from the mining
operations to produce a PGM concentrate. This
product is treated at the three smelters (Mortimer,
Polokwane and Waterval) and two refineries
(Rustenburg Base Metals Refinery and Precious Metals
Refinery) to produce saleable metals. |
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| SAFETY |
Processing operations had no fatal incidents in 2007.
The lost-time injury frequency rate on managed
operations decreased 9% to 0.45. To eliminate all
injuries at the processing operations, a safety
improvement plan has been devised and will be
implemented in 2008.
Safety achievements in 2007 included: |
| • |
Ivan concentrator at RPM-Union Section achieved
400 calendar days without a dressing station case; |
| • |
Amandelbult concentrators achieved 3 million
fatality-free shifts; |
| • |
Waterval UG2 plant achieved six years without a
lost-time injury; |
| • |
Mototolo concentrator has not had a single lost-time
injury since commissioning over a year ago; and |
| • |
Mortimer Smelter continued its excellent safety
performance and operated without a lost-time
injury for the second year in succession. |
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| |
| PRODUCTION |
Ore tonnes received from the mining operations
decreased in 2007, with tonnes milled through the
concentrators decreasing by 5% to 41,562,700 tonnes.
Despite the 5% decrease in 4E built-up head grade to
3.6 g/t, concentrator 4E recoveries increased to 80.3%
due to successful implementation of asset optimisation
and continuous improvement projects at various
concentrator plants, including the roll-out of the
R1.4 billion Mainstream Inert Grind (MIG) project.
The smelters' operating performance was satisfactory,
with Mortimer Smelter's throughput of 188,000 tonnes
of concentrate being the highest in five years. The cooling water failure in the first half of 2007 on the slag cleaning
furnace at the Waterval complex, which resulted in an
increase in pipeline stocks, was successfully repaired by
the end of August 2007 and included a number of
technical enhancements. The excess pipeline stocks were
treated in the second half of 2007.
Refining operations performance was excellent over
the year, with the Precious Metals Refinery improving
recoveries to over 99%. Refined platinum production
for the year decreased by 12% to 2,474,000 ounces. |
| |
| COSTS |
| Cash process cost per refined platinum ounce increased
by 34% to R2,021 compared with 2006. The significant
increase in unit costs was due to lower volumes as well
as a substantial increase in materials, spares and reagents
prices, above-inflation labour settlement, increased
energy costs and higher maintenance requirements
across the process operations. These cost pressures are
expected to continue in the near term. |
| |
| OUTLOOK |
| Concentrator operations will continue to roll out
IsaMills at the Group concentrator plants to optimise
recovery and increase concentrate grades in 2008.
Rustenburg Base Metals Refinery is being upgraded to
meet higher base metals production – expected
primarily from the PPRust North project. |
| |
| RESEARCH AND DEVELOPMENT |
Anglo Platinum’s research and development requirements are serviced by the Anglo Research division and selected external facilities. Internal technical support and technology development was augmented by additional investments in new comminution technology at the concentrator pilot plant facility at Rustenburg and greater mineralogical operational support in 2007.
As part of the asset optimisation strategy, an on-line operational performance monitoring centre was established in 2007. Analysing performance information, both historically and on-line, has allowed proactive steps to avoid slips in efficiency. This centre will be expanded in 2008 to cover all process operations in Anglo Platinum. |
| |
| Concentrators |
Anglo Platinum operates 19 individual concentrators in
nine locations around the Bushveld Complex. The head
of concentrating operations is responsible for managing
these units, which form part of the portfolio of the
executive head: process.
Commissioning of the Mototolo concentrator was
completed in 2007 and responsibility for plant
management was transferred from projects to the
process division. During 2007 the Waterval retrofit
project at Rustenburg, the A&B section IsaMills
at PPRust's Sandsloot concentrator and the IsaMills
at Waterval UG2 concentrator were successfully
commissioned and are being optimised. |
| |
| PRODUCTION |
The focus on asset optimisation, continuous business
improvement and the implementation of proactive online
performance monitoring of operational parameters
supported further improvement in concentrator
recoveries to 80.3% in 2007. This was achieved despite
a 5% decrease in built-up head grade as a result of the
higher ratio of UG2 and Platreef ore to total ore
treated, both of which have lower recovery potential
than Merensky ore. The overall concentrator recovery
is reduced by retreatment of tailings at WLTR with a
recovery of 38% and lower 4E grades on Platreef and
UG2 ore.
Tonnes milled decreased by 5% year on year to
41,562,700 due to the shortfall of ore received from
mining operations, with the biggest impact felt at
Rustenburg Section, where tonnes received from the
mine decreased by 14% or 1,710,000. This was partially
offset by an increase in Mototolo concentrator
tonnes milled of 741,500. Ore stocks ahead of the
concentrators were maintained at levels lower than
the prior year and are expected to be back at optimal
levels early in 2008. |
| |
| COSTS |
Cash concentrating costs increased by 26% to
R2.6 billion, owing partly to ramp-up projects consisting
of Mototolo and Marikana plants, and significant price increases in steel grinding mediums, chemicals and
increased labour settlement costs during the year
compared to 2006.
Total concentrating cost per tonne milled increased by
33% to R64 as a result of higher costs and fewer tonnes
received from the mining operations. |
| |
 |
| Richard Pilkington |
|
| |
| CAPITAL EXPENDITURE |
Capital expenditure totalled R3.2 billion, of which
R0.7 billion was ongoing capital and R2.5 billion
expansion capital. Expansion capital relates to the
construction of PPRust North plant, the Waterval
retrofit plant and the upgrade of Amandelbult's UG2
No 2 plant.
The PPRust North plant is designed to treat the
600,000 tonnes per month expected from the PPRust
North open-pit mine. The construction of this plant
continues to progress well. Operational readiness has
been achieved and the plant is expected to be
commissioned in the first half of 2008. Construction of
the Waterval retrofit plant was completed in 2007 and
is performing well. The Amandelbult concentrators'
UG2 No 2 plant upgrade to increase capacity from
75,000 to 210,000 tonnes per month has started and
is expected to be completed during the fourth quarter
of 2008. |
| |
| OUTLOOK |
The concentrators' operating initiatives are centred
around improving recoveries and increasing concentrate
grades delivered to the smelters. These improvements
are expected to be achieved through continued asset
optimisation initiatives including the deployment of
IsaMill technology.
Unit costs in terms of tonnes milled and platinum
ounces in concentrate will be impacted by expected
high input cost pressures, offset by increased throughput
as mining operations increase production. |
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