Platinum DRIVING THE FUTURE OF THE PGM INDUSTRY - MODERNISATION IS AN IMPERATIVE Chris Griffith, CEO - Anglo American Platinum Limited Robotics arm at the laboratory at Polokwane smelter
FOUR KEY COMPONENTS OF OUR MODERNISATION STRATEGY Crucial to our global competitiveness and future sustainability Generation of consistent & acceptable 1. shareholder returns Improved labour relations and 1. work environment 3.P Relationships with and benefits for local G communities and stakeholders M 3. Mechanisation 2
GENERATING SHAREHOLDER RETURNS Without appropriate returns, no other modernisation aspiration can be fulfilled ~70% of AAP’s production is in H1 of the primary producer cost curve… AAP Debt … deleveraged our balance sheet and reinstated dividend (sustainable dividend policy of 30% of headline earnings) 3
IMPROVING LABOUR RELATIONS & THE WORK ENVIRONMENT Creating a sense of ownership, responsibility & shared benefit in AAP’s future Reclaiming the relationship Addressing employee indebtedness Organisation cultural Delivering debt reduction solutions transformation • 989 employees on debt relief solutions • Serve & support leadership style • Garnishee orders reduced from 5,877 to • Focus on the frontline & lowest level around 500 upwards • 539 employees paying R3,630 less every month towards their debt • Improving levels of trust to address issues • R35 million combined debt reduction Improved environment Closing the wage gap Focus on safe work environment & Unionised employees Management improved conditions • Safety & critical control management 6.5% 8.7% • Modernisation & engineered controls 9.5% • Local hiring 0% • Improved housing & social infrastructure 4 • ESOP under discussion
THRIVING COMMUNITIES Communities must be able to see and feel a positive impact and real benefits Community benefit, unlocking all the opportunities From AAP’s non-core From AAP’s core SLP & CSI business activities business activities initiatives (R301m - 2017) Local Local procurement, Institutional enterprise Community Capacities development Health Municipal and Pipe factory & bowls Clinics constructed traditional leaders Komatsu partnership Awareness drives capacity building Affordable Local programs Housing Workforce & Local & Human Regional Alternative Zimele - Infrastructure Capital Livelihoods Northam Micro-credit Development Development Bokomoso for SME Agricultural hub HRD centres Water and Limpopo water project Development Groenfontein Sustainable School adoption Sanitation PEGAC Regional SED – Energy Education focus Roads – R37 etc. Delivery Limpopo ORWDP Solar projects at Ownership Alchemy, 2.33% ownership of AAP Mapela Hallcore water tender stage and leases Leases valued >R300m Underpinned by new/novel community engagement and partnerships • • • Faith based engagements HOD involvement directly in villages Newspapers in the community/newsletters 5 • • • SMS perception surveys Task teams Community field workers
ESTABLISHING LOCAL BUSINESSES - PIPE FACTORY AND TRUCK BOWL REPAIR EXAMPLES – MOKOPANE LIMPOPO Mokopane pipe factory established & opened in 2017 Bucket repair workshop established 6
PARTNERSHIPS TO DEVELOP INFRASTRUCTURE - LIMPOPO WATER PROJECTS AND ROAD IMPROVEMENT EXAMPLES Lebolelo pipeline, takes water from Polokwane area to Burgersfort De Hoop Dam partnership supplying R37 Provincial road upgrades 7 water to industry and communities around Polokwane smelter
EXAMPLES OF SCHOOLS SUPPORT & SCHOOL AND CLINIC INFRASTRUCTURE PROVISION BY APP Ramotshodi secondary built by AAP Sekuruwe Clinic, completed by AAP in 2017 Chromite school, infrastructure and teacher Computer centre at Mfidikwe, built by AAP support from AAP 8
FACILITATING HOME OWNERSHIP FOR EMPLOYEES Rustenburg and Northam examples and projects underway in Mokopane 9
ALTERNATIVE LIVELIHOODS – GROENFONTEIN HUB Fully functioning agricultural hub with contracts with Woolworths Groenfontein farm and pack house Groenfontein community fields 10
MODERNISATION IN PROGRESS Our modernisation journey has been taking shape over the past decade & is gaining momentum Modernisation examples Mechanisation examples Unki mine – 100% mechanised Operating control technology In stope netting & lighting Old PS-smith converting Rope anchor – Cabletec New ACP converting technology Emissions before ACP, 2002 Emissions after ACP commissioning 11
MECHANISATION – A COMPONENT OF MODERNISATION AAP is targeting 80% mechanised production from operations by 2027 Conventional stope modernisation and mechanisation program being rolled out Improving drilling rates Safer & more effective blasting Blasting technologies Electro/Hydraulic hand held drills • 500 drills ordered for roll-out & • Emulsion explosives • Improved IT system for testing explosives management More effective cleaning Addressing falls of ground • Cable support mechanisms • Water-jet cleaning improving • Timberless support systems productivity following improved • Stronger blast quality & rates netting 12
MECHANISATION – NEW MINING TECHNOLOGY Proof of concept trials under way on various new mining technology Rapid mine development Rock cutting - MN220 trials with Sandvik (RDMS) with Atlas Copco • Designed to mine declines on reef to • Designed to operates in 1m high stopes, delivering rapidly drop down & open new mining low volume ore at the desired grade areas • Targeting cutting rate of 3.9m/shift and • Targeting advance rates of 200m/month 1200m 2 /month Ultra low profile fleet Continuous hauling system • Consists of an 86m flexible • Have tested a fleet of ultra-low & mobile belt profile equipment at Twickenham • Targeting to remove 100 consisting of a drill rig, roof ton/hr of material (particle bolter, dozer, sweeper and size 250mmx70mmx70mm) continuous loader. • Currently being • Trail on ULP equipment aims to assembled at achieve stoping rates of 4000 m 2 Twickenham / month from a half level 13
Platinum Closing remarks and Q&A CLOSING REMARKS Q&A Amandelbult chrome spiral plant Atlas Copco RDMS unit, been on trial at Twickenham project
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