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PLATINUM
NEWS RELEASE
23 October 2014
ANGLO AMERICAN PLATINUM LIMITED
PRODUCTION REPORT FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2014
OVERVIEW

Regrettably two fatalities occurred in Q3 2014

Ramp-up at Rustenburg, Union and Amandelbult mines was completed ahead of schedule,
with normal production resumed by September. Q3 ramp-up losses amounted to 92 koz

Mogalakwena production increased to 87 koz, a 5% increase due to higher 4E head grade
and increased throughput at the concentrator

Group equivalent refined platinum production was lower by 90 koz or 14%, at 533 koz, due to
the post-strike ramp-up and planned lower production at both Rustenburg and Union mines
following the 2013 restructuring

Refined platinum production decreased by 31% to 460 koz due to lower mined supply and the
build-up of pipeline inventory following the drawdown on inventories during 1H 2014

Sales guidance for the year will remain higher than refined production due to the drawdown in
refined platinum inventory
REVIEW OF THE QUARTER
OPERATIONS
Tragically, Anglo American Platinum suffered two fatalities in Q3 2014. On 15 August a fatality
occurred at Thembelani mine; and on 11 September a fatality occurred at Dishaba mine. We remain
committed to our journey to zero harm and are fully investigating the circumstances which led to these
tragic events. The Lost Time Injury Frequency Rate (“LTIFR”) at managed operations for the year-todate September 2014 was 0.64 per 200 00 hours worked, 41% lower compared with the same period
in 2013.
Total equivalent refined platinum production (equivalent ounces are mined ounces expressed as
refined ounces) decreased by 14% to 533 koz, compared to 623 koz in Q3 2013. The year to date
ounce production loss as a result of the strike and subsequent ramp-up amounted to 532 koz. The
strike accounted for 424 koz and the ramp-up for 108 koz.
Rustenburg, Union and Amandelbult mines successfully returned to normal production during the
quarter, however, output was 98 koz or 34% lower at 192 koz. This was as a result of the ramp-up
following the conclusion of the strike contributing 92 koz and planned lower production from
Rustenburg and Union following the restructuring which included consolidation of loss making shafts
in August 2013 amounting to a decrease in production of 23 koz for the quarter. The ramp-up was
successfully completed within two months, a month ahead of schedule, and production at these mines
in August and September exceeded the prior year’s production performance after taking into account
the impact of the consolidation of loss making shafts.
(1)
Production at Mogalakwena increased by 5% to 87 koz due to higher achieved 4E built-up head
(2)
grade and increased concentrator throughput, supported by the mining productivity improvement
programmes. Production on-mine increased 3.5% or 2,800 ounces to 82,200 while toll concentrating
activities at the Lonmin BAOBAB concentrator yielded 4,700 platinum ounces, 1,160 or 33% more
due to higher throughput. Production performance at Unki mine, the Western Limb Tailings
Retreatment plant (WLTR) and the Twickenham project were constant for the quarter.
The Joint Venture and Associate production (mined and purchased) increased by 2% to 204 koz, with
particularly good performances were noted at BRPM due to UG2 grade and productivity
improvements (5% improvement in UG2 grade and 26% improvement in tons milled) as well as
Bokoni mine which showed an improvement of 17% in underground tons for the quarter.
Refined platinum production decreased 31% to 460 koz due to lower mined supply and the build-up in
pipeline inventory following the drawdown on inventories during the industrial action in the first half of
2014. Polokwane Smelter was shut during the quarter for a scheduled furnace rebuild. The work was
completed 10 days ahead of schedule and the smelter will return to steady-state production midOctober 2014.
Refined palladium production decreased by 14%, while refined production of rhodium decreased by
43% reflecting the change in mix of metals during the ramp up. Refined nickel production increased
by 6% to 5.2 tonnes. Nickel and copper matte production in Q3 2014 includes previously stockpiled
nickel and copper matte delivered to third parties for processing.
Sales volumes declined over the prior year due to a reduction in refined metal produced following the
strike.
As at 30 June 2014 we announced a loss of platinum production of 440 koz due to the strike (424
koz) and commencement of the ramp-up (16koz), with the potential for further losses of between 130150 koz of platinum upon completion of the ramp-up. This implied a production range of 1,710 – 1,730
koz for the year. Following the better than anticipated ramp-up, we are providing platinum production
guidance of 1.75-1.80 Moz for the year.
Sales guidance remains between 2.0- 2.1 Moz of platinum. Unit costs normalising for the strike will be
within the previous guidance provided of R18,000 - 19,000 per equivalent refined platinum ounce.
Capital expenditure guidance for the year will remain between R5.5bn and R6.5bn (excluding
capitalised interest and capitalised waste stripping).
As part of the on-going repositioning of the company, significant progress has been made in the
execution of the Union mine optimisation plan. Preparations for the sale of Union mine and
concentrator have been finalised and the sale process has commenced.
(1)
(2)
4E grade is the grade measured as the combined content of the four most valuable precious metals: platinum, palladium,
rhodium and gold
Built-up head grade is the total 4E grams produced from the concentrating process from concentrate, metallics (where
applicable) and tailings, divided by the total tonnes milled.
ANGLO AMERICAN PLATINUM
THIRD QUARTER PRODUCTION REPORT
PERIOD 01 JULY 2014 TO 30 SEPTEMBER 2014
Attributable equivalent refined Pt production
Own Mines and WLTR
Joint ventures - mined
Joint ventures and associates - purchased
Third parties - purchased
Sale of metal in concentrate
1
Unaudited
Unaudited
Unaudited
Quarter ended
Quarter ended
Quarter ended
30 Septem ber 2014
30 Septem ber 2013
30 June 2014
000 oz
000 oz
000 oz
000 oz
000 oz
000 oz
533
312
61
143
17
-0
623
406
66
134
17
-
358
157
58
130
13
-
Gross refined production
Platinum
Palladium
Rhodium
Gold
PGMs
Nickel - Refined
000 oz
000 oz
000 oz
000 oz
000 oz
000 tonne
460
316
48
15
909
5.2
666
369
85
34
1,249
4.9
421
295
49
27
850
5.5
Nickel - Matte 2
Copper - Refined
000 tonne
000 tonne
1.8
2.8
0.3
2.6
2.7
3.8
Copper - Matte 2
000 tonne
1.3
0.3
2.3
000 oz
000 oz
000 oz
308
150
2
515
151
0
278
142
0
000 tonne
g/t
%
000 oz
9,357
3.06
6
533
10,296
3.36
9
623
6,783
2.77
1
358
000 tonne
g/t
%
000 oz
1,488
3.64
27
86
1,982
4.10
35
132
337
2.59
2
13
Union Mine
Tonnes Milled
Grade (4E)
Merensky milled
Equivalent refined production
000 tonne
g/t
%
000 oz
848
2.91
1
33
962
3.47
1
48
102
2.72
17
4
Amandelbult Operations
Tonnes Milled
Grade (4E)
Merensky milled
Equivalent refined production
000 tonne
g/t
%
000 oz
1,234
3.78
12
74
1,332
5.19
18
111
449
2.07
2
14
Mogalakwena Mine
Tonnes Milled
Grade (4E)
Equivalent refined production
000 tonne
g/t
000 oz
2,853
2.96
87
2,968
2.75
83
3,073
3.00
96
Unki Platinum Mine
Tonnes Milled
Grade (4E)
Equivalent refined production
000 tonne
g/t
000 oz
408
3.16
16
400
3.32
17
399
3.07
15
Joint Venture Operations - mined (excl POC)
Tonnes Milled
Grade (4E)
Merensky milled
Equivalent refined production
000 tonne
g/t
%
000 oz
1,210
3.60
61
1,267
3.75
66
1,173
3.58
3
58
Pt from: Mining
Purchase of concentrate
Toll refining 3
Total Operations
Tonnes Milled
Grade (4E)
Merensky milled
Equivalent refined production
Rustenburg Operations excl WLTR
Tonnes Milled
Grade (4E)
Merensky milled
Equivalent refined production
1
Mine's production converted to equivalent refined production using Amplats' standard smelting and refining recoveries
2
Nickel and copper refined through 3rd parties is now shown as production of nickel matte and copper matte
3
Toll refining represents metal refined in respect of the recycling project and it was returned to the third party
4
Grades and production are reflected inclusive of low grade surface material at operations
Note: WLTR refers to Western Limb Tailings Retreatment plant. POC refers to Purchase of Concentrate
Note: 4E Grade is the grade measured as the combined content of the four most valuable precious metals: platinum, palladium, rhodium and gold
Johannesburg, South Africa
23 October 2014
For further information, please contact:
Investors:
Media:
Emma Chapman
Mpumi Sithole
(SA) +27 (0) 11 373 6239
(SA) +27 (0) 11 373 6246
(UK) +44 (0) 20 7968 8451
[email protected]
[email protected]
Notes to editors:
Anglo American Platinum Limited is a member of the Anglo American plc Group and is the world’s
leading primary producer of platinum group metals. The company is listed on the Johannesburg
Securities Exchange (JSE). Its mining, smelting and refining operations are based in South Africa.
Elsewhere in the world, the Group owns Unki Platinum Mine in Zimbabwe and is actively exploring in
Brazil. Anglo American Platinum has a number of joint ventures with several historically
disadvantaged South African consortia as part of its commitment to the transformation of the mining
industry. Anglo American Platinum is committed to the highest standards of safety and continues to
make meaningful and sustainable difference in the development of the communities around its
operations. www.angloamericanplatinum.com
Anglo American is one of the world’s largest mining companies, is headquartered in the UK and listed
on the London and Johannesburg stock exchanges. Our portfolio of mining businesses meets our
customers’ changing needs and spans bulk commodities – iron ore and manganese, metallurgical
coal and thermal coal; base metals and minerals – copper, nickel, niobium and phosphates; and
precious metals and minerals – in which we are a global leader in both platinum and diamonds. At
Anglo American, we are committed to working together with our stakeholders – our investors, our
partners and our employees – to create sustainable value that makes a real difference, while
upholding the highest standards of safety and responsibility across all our businesses and
geographies. The company’s mining operations, pipeline of growth projects and exploration activities
span southern Africa, South America, Australia, North America, Asia and Europe.
www.angloamerican.com