PALABORA MINING COMPANY LIMITED - Third quarter 2012 operations overview and production statistics

Third quarter 2012 – operations overview and production statistics

PALABORA MINING COMPANY LIMITED
(Incorporated in the Republic of South Africa)
Registration number – 1956/002134/06
JSE Code: PAM         ISIN: ZAE000005245
(“Palabora” or “the Company”)

THIRD QUARTER 2012 – OPERATIONS OVERVIEW AND PRODUCTION STATISTICS

Copper production for the quarter was negatively impacted by the production shaft guide
rope failure on the 4th July 2012. The production shaft was safely restored ahead of schedule
on 9th September 2012. The guide rope incident affected ore hoisted, ore treated as well as
concentrate, anodes and refined copper production. Refined copper production was a third
of the normal quarterly output from running down in-process inventory.

Higher grade 65% magnetite production was also affected by the guide rope incident
although normal dispatches were maintained through increased reclamations of the lower
grade 56% iron oxide from the stockpile. Magnetite production thus increased 4% and 98%
compared to the previous and corresponding quarter in 2011 respectively, mainly from the
road trucking to Maputo. The 2011 production was impacted by the Brakspruit bridge repair
in addition to other logistical constraints.

Vermiculite production remains aligned to reduced sales due to increased competition in the
American market and lower demand in Europe.

Opportune maintenance and annual shutdown in the copper production stream was brought
forward to minimize disruptions in the fourth quarter of the year. The challenge during the
third quarter was to preserve cash flows and the first half reported earnings were sufficient to
absorb the effect of the third quarter lost production.


                                                 Q3       Q4       Q1       Q2       Q3       9 MTHS    9 MTHS
                                                 2011     2011     2012     2012     2012       2011      2012
 Palabora mine 
 Tonnes hoisted (‘000 tonnes)                    3,024    2,403    2,759    2,729      734       8,340     6,222
 Mined ore treated (‘000 tonnes)                 2,969    2,434    2,615    2,691      745       8,115     6,051
 Slag ore treated (‘000 tonnes)                    164      411      306      198      237         827       741
 Total ore treated ('000 tonnes)                 3,133    2,845    2,921    2,889      982       8,942     6,792
 Underground ore grade: copper (%)                0.63     0.63     0.60     0.59     0.60        0.65      0.60
 Slag ore grade: copper (%)                       1.78     1.13     1.66     1.63     1.61        1.50      1.63
 Copper concentrates produced ('000 tonnes)       58.2     50.1     51.8     54.4     20.3         178       127
 Average concentrate grade: copper (%)            31.2     29.9     30.4     28.8     27.3        30.5      29.2
 Copper in concentrates ('000 tonnes)             18.2     15.0     15.7     15.6      5.6        54.2      36.9

 New concentrate smelted on site ('000 tonnes)    45.4     60.4     56.1     51.3      6.1         170       114
 New copper anodes produced ('000 tonnes)         10.8     15.7     14.7     13.8      1.2          44        30
 Refined new copper produced ('000 tonnes)        10.2     16.7     15.0     12.4      4.7        42.3      32.1
 Joint product:
 Magnetite concentrate ('000 tonnes)               744      985      957     1,420    1,475      2,444     3,852
 By-product:
 Nickel contained in products (tonnes)              23        9       14       13         2         78        29
 Copper sold as concentrate ('000 tonnes)            3      0.6        -        -         -          5         -
 Vermiculite plant
 Vermiculite produced ('000 tonnes)                 48       23       47       29        27        142       103

The above information has not been reviewed or reported on by the Company’s auditors.
Phalaborwa
15 October 2012

Investor Relations Contact: Dikeledi Nakene, Palabora +27 15 780 2277

Media Contact: Keith Mathole Palabora +27 15 780 2182
Gugulakhe Lourie, Rio Tinto South Africa +27 11 911 9700

Sponsor: One Capital

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