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ANGLO AMERICAN PLATINUM LIMITED - Anglo American Platinum Announces Temporary Shutdown of the Anglo Converter Plant (ACP) and Declares Force Majeure

Release Date: 06/03/2020 13:04
Code(s): AMS     PDF:  
Wrap Text
Anglo American Platinum Announces Temporary Shutdown of the Anglo Converter Plant (ACP) and Declares Force Majeure

ANGLO AMERICAN PLATINUM LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1946/022452/06)
Share Code: AMS
ISIN: ZAE000013181
(“the Company" or "Anglo American Platinum")


Anglo American Platinum announces temporary shutdown of the Anglo Converter Plant (ACP)
and declares force majeure

Anglo American Platinum announces the temporary shutdown of the entire Anglo Converter Plant (ACP),
part of the chain of processing facilities, and the need to declare force majeure.

The Company’s ACP phase A converter plant, at Waterval smelter in Rustenburg, was damaged following
an explosion within the converter on 10 February 2020. Nobody was injured in the incident and work has
started to repair phase A, which is expected to be completed by Q2 2021.

As per normal business procedure, the phase B unit was commissioned to take over from the phase A
plant and was in the process of ramping up to steady state, when water was detected in the furnace.
Notwithstanding extensive testing being conducted to determine the source of the water, and a number
of circuits being isolated, water continued to be observed in the furnace. This poses a high risk of
explosion and the Company has determined that it has no other option but to temporarily shut down the
phase B unit, to ensure the safety of all employees, and avoid a catastrophic event. It is anticipated that
the repair works to fix the phase B unit will take approximately 80 days.

As a result of the temporary closure of the entire ACP, Anglo American Platinum has had to declare force
majeure to customers, suppliers of third-party purchase of concentrate and suppliers of tolling material,
as we are unable to complete the processing of material during the converter repair. Production from own
mines will continue, and the concentrate from the mines will continue to be smelted at one of the four
smelter complexes. However, production from own mines, as well as third party material will not be able
to be converted to refined production while the ACP is undergoing repairs.

Initial estimates of the impact on AAP refined production are shown in the guidance below:

 Refined production guidance                New H1 2020          Revised full year      Previous full year
 (‘000 ounces)                                 guidance           2020 guidance           2020 guidance

 Platinum                                      400 – 450            1,500 – 1,700           2,000 – 2,200
 Palladium                                     300 – 350            1,100 – 1,200           1,400 – 1,500
 Rhodium                                          65 – 75               250 – 350                        --

 Total PGMs (5E + gold)                      850 – 1,050            3,300 – 3,800           4,200 – 4,700


Anglo American Platinum will host an analyst and investor call with time for Q&A on Friday 6 th March
2020 at 13:30 SA time and 11:30 UK time. Dial-in details are provided below, and a playback will be
available on the website. Pre-registration is required at the following link:

Conference call preregistration: www.diamondpass.net/2843044
A replay of the call can be accessed at the following numbers:

 Conference Replay
 South Africa:                                         010 500 4108
 UK:                                                   0 203 608 8021
 Australia:                                            073 911 1378
 USA:                                                  1 412 317 0088
 International:                                        +27 10 500 4108
 Replay Access Code:                                   31410

Certain statements made in this announcement constitute forward-looking statements. Forward-looking
statements are typically identified by the use of forward-looking terminology such as “believes”, “expects”,
“may”, “will”, “could”, “should”, “intends”, “estimates”, “plans”, “assumes” or “anticipates” or the negative
thereof, or other variations thereon, or comparable terminology, or by discussions of, for example, future
production, present or future events, or strategy that involves risks and uncertainties. Such forward-
looking statements are subject to a number of risks and uncertainties, many of which are beyond the
Company’s control and all of which are based on the Company’s current beliefs and expectations about
future events. Such statements are based on current expectations and, by their nature, are subject to a
number of risks and uncertainties that could cause actual production and performance to differ materially
from any expected future production or performance, expressed or implied, by the forward-looking
statement. The forward-looking statements contained in this report speak only as of the date of this report
and the Company undertakes no duty to update any of them and will not necessarily do so, in light of new
information or future events, except to the extent required by applicable law or regulation.

6 March 2020

Sponsor
Merrill Lynch South Africa Proprietary Limited


For further information, please contact:


Investors:                                         Media:
Emma Chapman                                       Jana Marais
(SA) +27 (0) 11 373 6239                           (SA) +27 (0)79 932 1586
emma.chapman@angloamerican.com                     jana.marais@angloamerican.com

Notes to editors:

The ACP plant is a key part of Anglo American Platinum’s PGM production process, treating furnace
matte from the company’s smelters. At the ACP plant, sulphur and iron contained in the furnace matte
from the smelters are converted to sulphur dioxide and slag. The resulting converter matte is then slow-
cooled to concentrate PGMs into a metallic fraction. From the ACP, material moves to the Magnetic
Concentration Plant (MCP), where the converter matte is milled and the PGM fraction is separated
magnetically. The PGM-bearing material then moves from the MCP to the Precious Metals Refinery
(PMR), where the PGMs are separated and purified to yield platinum, palladium, iridium, rhodium,
ruthenium and gold.

Anglo American Platinum Limited is a member of the Anglo American plc Group and is a leading primary
producer of platinum group metals. The company is listed on the Johannesburg Securities Exchange
(JSE). Its mining, smelting and refining operations are based in South Africa, as well as its two joint
venture operations. Elsewhere in the world, the Group owns Unki Platinum Mine in Zimbabwe. Anglo
American Platinum is committed to the highest standards of safety and continues to make a meaningful
and sustainable difference in the development of the communities around its operations.

www.angloamericanplatinum.com

Anglo American is a leading global mining company and our products are the essential ingredients in
almost every aspect of modern life. Our portfolio of world-class competitive mining operations and
undeveloped resources provides the metals and minerals that enable a cleaner, greener, more
sustainable world and that meet the fast growing consumer-driven demands of the world’s developed and
maturing economies. With our people at the heart of our business, we use innovative practices and the
latest technologies to discover new resources and mine, process, move and market our products to our
customers around the world – safely, responsibly and sustainably.

As a responsible miner – of diamonds (through De Beers), copper, platinum group metals, iron ore, coal
and nickel – we are the custodians of what are precious natural resources. We work together with our
business partners and diverse stakeholders to unlock the sustainable value that those resources
represent for our shareholders, the communities and countries in which we operate, and for society as a
whole. Anglo American is re-imagining mining to improve people’s lives.

www.angloamerican.com

Date: 06-03-2020 01:04:00
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