The strategic objective of Amplats is to produce a safe, sustainable, competitive and profitable platinum business for the long-term benefit of all its stakeholders. Amplats plans to achieve this through a three-pronged approach: by developing the market for platinum group metals; by optimising the portfolio through aligning baseline production with long-term demand expectations and focusing on high-quality operations; and by managing costs to deliver profitability, sustainably.
Developing the market
Amplats has a revised commercial strategy to realise value through revised contractual terms with a broader customer portfolio while promoting new PGM applications. It aims to develop markets for new industrial applications while maximising the benefit from the traditional autocatalyst and jewellery markets. It seeks to leverage on new and existing relationship with its customers, consumers and other stakeholders to realise this goal.
Optimising the portfolio
Amplats plans to align baseline production with long-term demand expectations, focusing on a high-quality portfolio of operations to produce PGMs on an economically sustainable basis. Exposure to high-risk, low-margin, capital-intensive mines will be reduced, supporting a significant reduction in the cost base. In pursuing value over volume, Amplats has streamlined its project pipeline allowing a more efficient allocation of capital to mines that are best placed to sustain and create employment over the long term. Flexibility in the portfolio will be retained to meet potential upside in demand expectations.
Managing the costs
While unrelenting in its focus on safety as it pursues its Zero Harm objectives, Amplats seeks to enhance value at its current operations by implementing a programme of targeted cost reduction and efficiency improvements. These are expected to deliver significant cost reductions on a sustainable basis by 2015. Additionally, overheads have been reviewed and reduced to ensure that they appropriately support the operations through a new organisation design.
|Our future and success depend on finding, securing and optimally exploiting world-class PGM deposits.||Constructive stakeholder engagement and long-term relationships are key attributes to securing and retaining resources.||The responsible management of our portfolio of operations enables appropriate responses to market changes.||Market intelligence informs our development, and this drives production requirements.|
OUR PORTFOLIO AT A GLANCE
A comprehensive review of the Company’s portfolio of operations was conducted in 2012. This review culminated in the announcement, on 15 January 2013, of the proposed operational changes. The Company has subsequently agreed with the Department of Mineral Resources and labour unions to follow an extensive consultation process which will not take more than 60 days, beginning 30 January 2013. Thereafter the section 189 process will continue.
|Our operations in South Africa – 2012|
|Unki Platinum Mine – Zimbabwe 2012|
Amplats is the world’s leading primary producer of platinum group metals and accounts for approximately 40% of the world’s newly mined platinum. The Company is listed on the JSE Limited and has its headquarters in Johannesburg, South Africa. Amplats’ wholly owned South African mining operations in the Bushveld Complex include the Bathopele, Dishaba, Khomanani, Khuseleka, Mogalakwena, Siphumelele, Thembelani and Tumela mines. The Twickenham Mine remained under development during 2012.
In addition, the Group has a number
of joint ventures, as follows: with Atlatsa Resources Corporation over the Bokoni Mine; ARM Mining Consortium Limited over the
Modikwa Mine; Royal Bafokeng Resources over the combined Bafokeng-Rasimone Platinum Mine and Styldrift properties; the Bakgatla-Ba-Kgafela traditional community, which holds a 15% share in Union North and South mines; Eastern Platinum Limited (a subsidiary of Lonmin plc) and its partner, the Bapo-Ba-Mogale traditional community and Mvelaphanda Resources, over the Pandora Joint Venture; and Xstrata Kagiso Platinum Partnership, to operate the Mototolo Mine. Amplats also has pooling-and-sharing arrangements with Aquarius Platinum (South Africa), covering the shallow reserves of the Kroondal and Marikana mines that are contiguous with its own 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 wholly owned operations, but also from joint ventures and third parties.
Elsewhere in the world, the Group operates the Unki Mine on the Great Dyke in Zimbabwe and is actively exploring in Brazil with joint-venture exploration partners. The Group also has exploration partners in Russia.
|Rustenburg before portfolio review|
|Rustenburg after the proposed portfolio review|