Operations Review (Part 1) - Anglo Platinum

To this end, I am pleased toreport that the implementationDorian EmmettChief Operating Officerof the Behaviour-Based Safety(BBS) process, whichemphasises the need fordesirable behaviour andpublicly recognises acts ofsafe behaviour, hascontributed to the drop in theLTIFR. I am confident that intime the BBS process willpermeate every aspect of ourdaily routine as we strive toeliminate all unsafe acts.Please refer to the SustainableDevelopment Report(Volume 2) for a detailedoverview of the manysuccessful environmentaland socio-economic initiativesundertaken over the year anda more complete summary ofhealth and safety.C O M P E T I T I V E C O S TP E R F O R M A N C EOperationsAn operating margin of 54,5%was achieved on steady-stateoperations. AmandelbultSection performed solidly.Head grade and concentratorrecovery both improved andthe unit cost increase wascontained to 9,6%. Lebowaalso performed well in 2002and raised its production,head grade and concentratorrecovery. Unit costs rose by10,7%. Union Sectionmaintained production levelsdespite losing shiftsassociated with the evaluationof a new employee shiftsystem in co-operation withunions and associations.The mine focused onupgrading infrastructure andincreasing available orereserves. Unit costs rose by12,1%. Rustenburg Section’sreported production declinedprincipally as a result ofthe incorporation of theBrakspruit, Bleskop andPaardekraal shafts in theRustenburg UG2 Phase 1project. Costs on the smallerbase were well controlled.In the first half of the yearPotgietersrust was negativelyaffected by a drop in millhead grade resulting from alow-grade intrusion in thesouth pit. An acceleratedstripping programme,additional production from anew mini-pit and completionof the Ga-Pila villagerelocation during the yearresulted in an increase inavailable ore reserves by yearend, enhancing future miningflexibility. Costs were wellcontrolled; the cash costper ton mined fell 16,0%compared to 2001. However,the unit cost per refinedounce increased by 43,7% asa result of the lower grade.The smelting, treatment andrefining operations deliveredan excellent performancein terms of throughput,recoveries and pipeline stockmanagement during 2002.The hiring of the additionalfurnace to treat high chromeslag arisings will cease oncommissioning of a new slagcleaning furnace in the secondquarter of 2003.37