In addition, the Group has a number of joint ventures. Anglo Platinum Limited is the world’s leading primary producer of platinum group metals (PGMs) and accounts for about 40% of the world’s newly mined platinum. The Company is listed on the JSE Limited. It delisted its secondary listing from the London Stock Exchange during 2009. The Group’s mining operations were restructured in 2009. The former Rustenburg Section was split into the Bathopele, Khomanani, Thembelani, Khuseleka, and Siphumelele mines, while the former Amandelbult Section was split into the Tumela and Dishaba mines. Union Mine, Mogalakwena Mine and Twickenham Mine remained managed operations of the Group. On 30 June 2009 Anglo Platinum sold and transferred control to Anooraq Resources (Anooraq) of an effective 51% of the formerly wholly owned Lebowa Platinum Mine (Lebowa) and an additional 1% of the Ga-Phasha, Boikgantsho and Kwanda joint-venture projects. The Group is also in joint venture with: ARM Mining Consortium Limited, a historically disadvantaged South African (HDSA) consortium, to operate the Modikwa Platinum Mine; Royal Bafokeng Resources, an HDSA partner, over the combined Bafokeng-Rasimone Platinum Mine (BRPM) and Styldrift properties; the Bakgatla-Ba-Kgafela traditional community, who hold a 15% share in Union Mine; Eastern Platinum Limited (subsidiary of Lonmin Plc) and its HDSA partner, the Bapo-Ba-Mogale traditional community and Mvelaphanda Resources to operate the Pandora Joint Venture; and Xstrata Kagiso Platinum Partnership, to operate the Mototolo Mine. Anglo Platinum also has pooling-and sharing-arrangements with Aquarius Platinum (South Africa), covering the shallow reserves of the Aquarius Kroondal and Marikana mines that are contiguous with Anglo Platinum’s Rustenburg mines. The Group’s smelting and refining operations are wholly owned through Rustenburg Platinum Mines Limited and are situated in South Africa. These operations treat concentrates not only from the Group’s wholly owned operations, but also from its joint ventures and third parties. Elsewhere in the world, the Group is developing the Unki Platinum Mine in Zimbabwe and is actively exploring in Brazil. It has exploration partners in Canada, Russia and China. Anglo Platinum’s 2009 Annual Report, therefore, is the Company’s first fully integrated annual report to shareholders. As such, it offers a complete overview of the Company’s financial, social and environmental performance in a single, consolidated report. Much of the information and data on the Group’s performance in terms of sustainability has now been integrated into the relevant sections of the annual report, including the CEO’s review and the sections on performance highlights, the business environment and business results. A complete set of data for the non-financial statements has also been included in the Company statistics section Our strategy is to create maximum value through understanding and developing the market for PGMs, grow the Company to expand into those opportunities and to conduct our business safely, cost effectively and competitively. Our objective is to be the number one company in finding, mining, processing and marketing PGMs for the maximum benefit of all our stakeholders. Our values are that we put safety first; we deliver on our promises; we value and care about each other; we act with honesty and integrity; we are one team; and we are passionate about, and take pride in, everything we do. of this report for ease of reference, and is to be found on pages 153 to 157. The Company has also produced a more detailed sustainable development report that contains additional detail and case studies. This is available in Adobe pdf format on the Company’s website, at www. angloplatinum.com. This sustainable development report has been compiled in accordance with the GRI’s G3 guidelines. It is independently assured by PricewaterhouseCoopers, to an application level of A+. The Company has, since 2002, produced its annual report in two volumes. Volume 1 has been the business report, while Volume 2 has been the sustainability report, which has been compiled in accordance with the guidelines of the Global Reporting Initiative (GRI). In order to give a complete overview of the business in one report, it was decided that the 2009 annual report would be a fully integrated, single-volume report. A nglo Platinum is exposed to various risks and uncertainties that may have a negative impact on the Group’s operations, finances or reputation, and that may also undermine the achievement of its social, economic and environmental objectives. Understanding risks, and developing and executing appropriate responses to them, is crucial in ensuring Anglo Platinum’s sustainability. At Anglo Platinum, risk management is an integral part of the Group’s strategic and business processes. The Group appreciates that a successful business is not about avoiding risk altogether. Rather, it is about understanding the risks integral to the achievement of our objectives, and finding ways to mitigate them while capitalising on opportunities. balance sheet in order to be able to invest for the future and to provide our investors with superior equity returns. We therefore continue to focus on cost management; the prioritising and rationing of capital expenditure; and maintaining a flexible approach to production in response to market demand. management of our operational footprint. Failure to optimise the value of our portfolio, or to sustain efficiency initiatives, will negatively impact investor perceptions and will ultimately threaten the viability of the business. Initiatives such as cost savings, the restructuring of the Rustenburg and Amandelbult operations and the restructuring of the capital projects programme are showing early signs of success. This area will continue to receive management’s attention during 2010. The treasury function also oversees the management of counterparty risk, particularly with banks in which Anglo Platinum places cash deposits. focusing on getting more done with the capital it has available. The Group is exposed to considerable revenue cash flow volatility as a result of changes in metal prices and the Rand/US dollar exchange rate. As a result of the high level of fixed costs incurred by our operations, our free cash flow is highly geared to price and exchange rate changes. This requires us to have a strong Optimisation of the Group’s value is a function of our position on the cost curve, our capital efficiency relative to that of our peers and the proper The Group’s long-term sustainability and competitiveness are dependent on us lowering our operating and capital cost bases and moving our mines down the industry cost curve. Failing this, our ability to weather future economic downturns and generate free cash flow after investing for growth will be weak. Steep future escalations in the electricity tariff in South Africa are expected to place further upward pressure on the cost base, while the secondary impact of these increases on general producer price inflation is unknown. We have specific asset optimisation projects in place to manage the consumption of production resources at our operations and continue to leverage the scale of our operations to optimise prices paid for goods and services through our inbound supply-chain process. Operational review forums at various levels in the organisation take place regularly and cost management remains a key focus area. Failure to adopt high levels of safety management can result in numerous adverse outcomes, including unacceptable injuries to our employees and contractors. Failure to meet our safety objectives has an impact on the well-being of our employees and their families, on employee morale, on the achievement of production targets and on the reputation of the Group. Risk mitigation actions include the embedding of our safety-related and other values; the implementation of our safety standards; training and management systems that provide leading indicators of safety issues; participation in the Anglo American plc peer-review programme; compliance with the fatal risk standards; and the implementation of safety-risk management processes. The Company is exposed to liquidity risk, which arises from the need to finance its ongoing operations and growth. If the Company is unable to obtain sufficient capital owing to capital market conditions, it may not be able to raise sufficient funds to develop new projects, fund acquisitions or meet its ongoing financing needs. As a consequence, its ability to operate and grow may be adversely affected. The Group is exposed to counterparty risk from customers, suppliers, financial institutions and business partners. Should these counterparties become unable to meet their obligations to Anglo Platinum, financial losses could follow. Anglo Platinum’s treasury function, which is managed by Anglo American plc, is responsible for managing the Group’s funding requirements and liquidity risk in conjunction with the Group’s management. The Group has strategies in place to optimise its capital structure and to allow us to pursue projects that add value to the Company. Net debt at year end amounted to R19.3 billion, compared with total available facilities of R37.3 billion. Anglo American plc has agreed to follow its rights in an equity-raising that will take place during the first quarter of 2010. Failure to meet production targets impacts our profitability. The Group’s resources are aligned with a production target that has been set for each operation for the next three years, taking into account our view of the platinum market and our customers’ requirements. Failure to meet production targets is dilutive of our margins. Production results are monitored and corrective action is taken on a daily, weekly and monthly basis. Following on the outcomes of these reviews, action plans are formulated and production plans revised. A monthly operations committee meeting has been instituted to oversee the Group’s operational performance. The Group has reviewed its project portfolio based on the increased cost and scarcity of capital; the availability of resources; constraints in power supply; and the strategic fit going forward. We need to ensure that our project portfolio does not result in us not being well placed to seize opportunities to increase our market share, or not being well positioned to deliver into market opportunities. Anglo Platinum is Ensuring the safety of our employees, and of all the other people who work at the Company’s operations, is our first priority in the management of our business. Unfortunately, despite our focus on safety, 13 people lost their lives at work in 2009 at Anglo Platinum. We are acutely aware of the human tragedy each of these fatalities represents and extend our sincere and deepest sympathies to the families and colleagues of those who died, and to others also affected by their deaths. Each fatality at Anglo Platinum is thoroughly investigated, to ensure that corrective action is taken across the entire Company to prevent a recurrence of its cause. Although it remains unacceptable for people to get injured or lose their lives at our operations, the downward trend seen in a number of safety indicators is nevertheless encouraging. The number of fatalities at Anglo Platinum’s operations has been decreasing over the past three years from 25 in 2007, to 18 in 2008 and 13 in 2009. The causes of the fatalities were as follows: falls of ground – five; transportation-related incidents – three; falling objects – two; contact with moving machinery – one; exposure to blasting fumes – one; and falling from a height – one. The lost-time injury-frequency rate (LTIFR) improved considerably over the past year, from 1.74 in 2008 to 1.37 in 2009 (a reduction of 21%). At Anglo Platinum the number of stoppages initiated by employees and management is considered to be a key safety indicator and is monitored as such. This approach encourages a culture of reporting unsafe conditions or actions in order to take appropriate corrective action. In excess of 15,000 stoppages were recorded during 2009, with 61 of them section 54 notices issued by the Department of Mineral Resources in terms of the Mine Health and Safety Act. All the stoppages were investigated and the appropriate actions taken to rectify the situation. Stoppages lasted from a few minutes to a couple of days in some instances. This improved safety performance was achieved despite the fact that 2009 proved to be a challenging year for Anglo Platinum. The organisation underwent major restructuring, particularly of its Rustenburg and Amandelbult operations, and experience has shown that organisational restructuring often results in instability and uncertainty and in a corresponding deterioration in safety performance. Our belief is that a restructured Anglo Platinum, with its more focused managerial operational units than before, will be able to deliver further improvements in safety performance. safety management systems; behaviour change; engineering and technological solutions; and wellness in the workplace. The safety strategy remains aligned to past initiatives and best practices, and will be reviewed by senior management in early 2010, with input from Anglo American plc, to evaluate what enhancements can be made. The review process will be overseen and assured by PricewaterhouseCoopers. It consists of six pillars designed to cater for the different aspects and phases of the business. The six pillars of the fall of ground management (FOGM) initiative are: I I Research – requires research and development of new technologies to eliminate fall of ground. I I I Anglo Platinum’s improved safety performance in 2009 can be linked to the Company’s sound and stable safety approach. In early 2009 it drew up a safety strategy and plan based on a gap analysis of its new ‘One Safe Anglo’ safety drive and its existing safety management strategies and programmes, such as its previously reported-on enhanced safety improvement plan (ESIP). Anglo Platinum’s strategy continues to be based on a vision of ‘zero harm’ and on the three principles of ‘zero mindset’, ‘no repeats’ and ‘simple, non-negotiable standards’. There are four main focus points to the strategy: The aim of safety systems is to create a systematic framework for the management of hazards and their associated risks. Our safety management system incorporates the requirements of the OHSAS 18001 standard and of the Anglo Safety Way, and also includes specific standards such as the Anglo Fatal Risk Standards. An IT system known as IRM.NET has been under development at Anglo Platinum during the past few years and forms an important part of the Company’s safety management systems. Using input from safety and other inspections, IRM.NET allows management to pinpoint working areas with a deteriorating safety risk profile so that corrective action can be taken before an incident actually occurs. This information helps management to focus its attention proactively, and to show visible felt leadership in those areas requiring the most attention. Uncontrolled falls of ground remain responsible for a high percentage of lost-time injuries and fatalities. Consequently, falls of ground management was identified as a major strategic focus and a system was developed to integrate and refine existing efforts to eliminate such falls. The system is supported by a policy of ‘no rock will fall uncontrolled’. I Macro design – during mine design phase. Micro design – includes ongoing support design aspects. Implementation – focuses on ensuring implementation actually happens against design plans. Monitoring – focuses on checking and auditing against design and the standard. Review – requires management review of the system. This systematic, line-management-driven system recognises and supports existing safety systems, combining them with rock engineering efforts and controls to eliminate uncontrolled falls of ground. Because varied geological profiles and different mining depths across the Group’s operations have had to be taken into account in the process of developing the system, it is envisaged that its full implementation will require until the fourth quarter of 2010 to complete. Following the launch of the Company values in 2008, the Leadership Academy was tasked with helping to embed the concept of ‘living’ the behaviours implicit in these values among employees. The following three programmes have been developed and implemented in 2009: I The Commitment Workshop, the aims of which are to: » generate a profound commitment to, and belief in, the possibility of realising zero harm; » translate commitment and belief into actions and behaviours that will entrench the intended transformation of values within the Company’s operations; and ENVIRONMENTAL INDICATORS 2009 Materials Rock broken – managed operations (100%) Ore milled – managed operations (100%) Accumulated low-grade stockpiles Coal Liquid petroleum gas (LPG) Grease Fuels Lubricating and hydraulic oils Energy Energy from electricity purchased Energy from processes and fossil fuels Total energy consumed Water Water used for primary activities Potable water from an external source Non-potable water from an external source Waste or second-class water used Surface water used Groundwater used Water recycled in processes Water used for non-primary activities Land Land under Group charge for current mining activities Land utilised for current mining and related activities Total tailings dam area Total waste rock dump area Mining in formally protected areas Other land owned All land owned (new parameter from 2007) Emissions GHG emissions, CO2 equivalent From electricity purchased Internally generated Nitrous oxides Sulfur dioxide Particulates (point sources) Discharge Discharge to surface water Surface water quality monitored at all operations? Surface water quality deterioration off-site? Adverse surface water impact on humans? Groundwater quality monitored at all operations? Groundwater quality deterioration? Adverse groundwater impact on humans? 73,478~ 37,604 16,631 127.5 4.40 0.88 40.01 12.25 18,550 5,151 23,701 34,151 20,925 999 11,171 0* 4,970 40,074† 6,449 51,330 14,723 3,127 844 — 45,855 5,580 5,153 427 NM 15.34 0.45 4,456 Yes Yes Yes Yes Yes No 2008 128,089 39,126 19,709 113.7 4.62 1.18 77.36 17.48 19,196 6,202 25,398 28,362 23,556 1,144 4,170 1,164 8,792 25,231 6,582 51,334 15,634 2,310 — 46,974 5,581 5,087 494 NM 15.51 0.38 3,658 Yes Yes Yes Yes Yes No 2007 Kilotonnes 116,162 38,433 18,658 119.0 6.32 1.24 Megalitres 72.82 15.65 Terajoules 19,642 6,254 25,896 Megalitres 30,148 23,439 1,444 2,909 1,434 9,707 23,590 6,018 Hectares 51,334 14,778 2,310 752 — 51,102 Kilotonnes 5,729 5,227 502 NM 18.54 0.46 Megalitres 4,596 Quality Yes Yes No Yes Yes No 2006 97,323 39,863 16,072 128.5 6.46 1.38 62.14 7.32 19,906 6,103 26,009 27,787 22,663 333 4,681 757 9,857 18,182 5,852 48,846 12,408 2,265 687 — — 5,821 5,325 496 NM 16.38 0.61 2,476 Yes Yes No Yes Yes No 2005 86,876 38,402 13,246 113.1 4.53 1.17 54.81 4.40 18,476 5,319 23,795 25,525 23,740 289 1,969 181 10,473 18,959 7,466 46,784 11,564 2,308 682 — — 5,375 4,942 433 0.22 15.21 0.89 608 Yes Yes No Yes Yes No Waste Mineral waste accumulated in: Tailings dams (active and inactive) Rock dumps Slag dumps Non-mineral waste generated: Hazardous to landfill Hazardous incinerated Non-hazardous to landfill Non-hazardous incinerated Environmental incidents and complaints Level 1 (minor impact and/or non-compliance) Level 2 (intermediate impact and/or non-compliance) Level 3 (major impact and/or non-compliance) Formal complaints Products Total refined PGMs and gold – managed operations° 2009 2008 2007 Kilotonnes 839,142 692,799 5,162 5.5 0.03 26.63 0 2,689 3 — 18 4,395,394 730,750 665,399 ∆ 2006 2005 686,814 566,518 3,940 7.30 0.03 41.35 0.04 Number 5,547 6 — 18 Ounces 4,192,011 675,258 488,444 3,542 7.13 0.02 39.53 0.04 5,819 2 — 19 4,595,151 644,065 427,827 2,915 13.19 0.03 27.68 0.05 4,526 5 — 45 4,258,382 13.69 0.02 26.13 0.03 3,442 1 — 8 4,302,554 ~ Large decrease due to reduced mining at Mogalakwena. Surface stockpiles were processed in 2009. Rock broken at Bokoni only included until 30 June 2009. * Water reassigned to groundwater rainfall according to latest water model definitions. † Increase attributed primarily to better internal measurements of the overall water balance. ∆ Parameter not reported as final figures for 2008 could not be verified. ° Excludes toll refining from Anglo Platinum marketing. 2009 Environmental benchmarks (from published information) Anglo Platinum Total energy (Terajoules) Total new water (000 cubic metres) Greenhouse gas emissions (kilotonnes CO2 equivalent) Sulfur dioxide emissions (tonnes) ° ∆ Impala 16,388 35,900† 3,391 21,152 Lonmin 6,613 8,885 1,595 3,941∆ Northam 2,164° 16,938 757 3,650 23,701 40,600 5,580 15,337 Energy from electricity only. Stack emissions only. † Includes recycled water. www.blacksunplc.com © Black Sun Plc 2011 13
