2 Integrated Annual Report 2014 Introduction About ARM African Rainbow Minerals (ARM) is a leading South African diversified mining and minerals company with long-life, low unit cost operations. ARM mines and beneficiates iron ore, manganese ore, chrome ore, platinum group metals, copper, nickel and coal. ARM also produces manganese and chrome alloys and has an investment in gold through its shareholding in Harmony. 100% 100% 10% 51% 100% 100% Strategic Services and Exploration PGMs Iron Ore Coal Copper PGMs 41.5% Modikwa1 55% Two Rivers2 50% Khumani 50% Beeshoek 20% Participating Coal Business 40% Lubambe and Lubambe Extension Area Manganese Ore Nickel, PGMs & Chrome Manganese Ore Coal Copper Exploration Coal 50% Nchwaning 50% Gloria 51% Goedgevonden 50% Nkomati 14.6% Gold: Harmony 50% Lusaka and Kabwe Base metals PGM Exploration 46% Kalplats Manganese Alloys Iron Ore 50% Cato Ridge 25% Cato Ridge Alloys 50% Machadodorp 27% Sakura Chrome Ore 50% Dwarsrivier 1 Charge Chrome 2 50% Machadodorp ARM’s effective interest in Modikwa Mine is 41.5%, local communities hold 8.5% of Modikwa Mine. ARM’s shareholding in Two Rivers will reduce to 51% once the transfer of Kalkfontein portions 4, 5 and 6 and Tweefontein prospecting rights has been effected. 3 Where we operate Malaysia Zambia South Africa Modikwa Platinum Mine South Africa Participating Coal Business Kalplats PGM Exploration Project Goedgevonden Coal Mine Nkomati Nickel Mine Khumani Iron Ore Mine Lesotho Beeshoek Iron Ore Mine Northern Luapula Sakura Ferroalloys Project Copperbelt Sibu Northwestern Sarikei Eastern Central Kuching Lusaka Western Southern Sabah Brunei Miri Muchinga Lubambe Extension Area Cato Ridge Ferromanganese Works Malaysia South China Sea Lubambe Copper Mine Two Rivers Platinum Mine Machadodorp Ferromanganese and Ferrochrome Works Nchwaning & Gloria Manganese Ore Mines Zambia Dwarsrivier Chrome Mine Bintulu Sarawak 4 Integrated Annual Report 2014 Salient features “ARM achieved record headline earnings in F2014 and declared an increased dividend of 600 cents per share. Excellent performances from Nkomati and Two Rivers mines as nickel and PGM’s contribution to headline earnings increased significantly.” Patrice Motsepe, ARM Executive Chairman Headline earnings per share increased from 1 735 cents per share to 1 900 cents per share. Increased dividend declared of 600 cents per share. Headline earnings per share (cents) 2 500 Lubambe Copper Mine produced 23 791 tonnes copper as it continued its ramp-up. Sakura Ferroalloys Project began construction; R790 million has been spent to date. 1 585 1 615 F2011 F2012 1 735 1 500 1 000 807 500 0 Costs were well controlled at the Nkomati, Dwarsrivier and Two Rivers mines. 1 900 2 000 F2010 F2013 F2014 Dividends per share (cents) 700 600 600 500 450 475 510 400 300 200 200 100 0 F2010 F2011 F2012 F2013 F2014 Introduction The Lost Time Injury Frequency Rate (LTIFR) was reduced from 0.48 (per 200 000 man-hours) to 0.37 in F2014. Total CSR expenditure (R million) 350 283 300 250 200 Khumani, Black Rock and Dwarsrivier mines each completed more than two million fatality-free shifts. Continued improvement in the implementation of HIV & Aids and Tuberculosis (TB) management programmes. 169 150 100 100 126 58 50 0 F2010 F2011 F2012 Total Corporate Social Responsibility (CSR) expenditure increased to R283 million. F2014 Lost Time Injury Frequency Rate (LTIFR) (per 200 000 man-hours) 1.0 0.9 0.8 0.77 0.7 0.6 Overall employment equity performance is ahead of 2014 Mining Charter targets. F2013 0.48 0.5 0.4 0.43 0.40 F2011 F2012 0.37 0.3 0.2 0.1 0.0 F2010 F2013 F2014 continued 5