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ANGLO AMERICAN PLATINUM LIMITED - Anglo American Platinum ramps up ACP plant to restart refined PGM production

Release Date: 05/05/2020 08:00
Code(s): AMS     PDF:  
 
Wrap Text
Anglo American Platinum ramps up ACP plant to restart refined PGM production

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 ramps up ACP plant to restart refined PGM production

Anglo American Platinum has safely and successfully completed the repair of the Anglo Converter Plant
(ACP) Phase B unit. The ACP and full downstream processing operations are completing a safe ramp-
up and expect to be fully operational from 12 May 2020. Force majeure to suppliers of concentrate will
be lifted on that date.

CEO of Anglo American Platinum, Natascha Viljoen, stated:

“I am pleased to report that we have safely and successfully completed the repair of the ACP Phase B
unit ahead of schedule, enabling the restart of refined production of our platinum group metals and our
base metals. We were vigilant in adhering to strict health and safety protocols to keep the repair team
safe during the lockdown, whilst ensuring that we were able to implement social distancing and hygiene
requirements which form our new way of working during the COVID-19 pandemic.

We have carried out substantial testing to ensure the stability of the ACP Phase B unit, and as we
complete the ramp-up, we are engaging with suppliers of concentrate to lift force majeure imminently. All
temporary commercial arrangements applicable during the force majeure period will revert to normal
commercial terms.”

The estimated final cost of repairs for ACP Phase B is c.R150 million, in line with the lower end of guidance
provided. Repair work on the ACP Phase A unit continues and is progressing in line with the project plan.
All orders for long lead items have been placed and the dismantling work started on site.

Due to the time taken to refine the respective platinum group and base metals, the force majeure notice
remains in effect for our refined metal customers. Force majeure arrangements with these customers will
be lifted in the future and in line with the provisions of our agreements.

Given the collective uncertainty around the start-up of ACP, the ramp-up of mining operations and the
potential impact of COVID-19, Anglo American Platinum retains its current guidance and will provide an
update as appropriate when we have further information and clarity on production.


A safe and successful repair under lockdown

In accordance with lockdown regulations, the repair team was able to continue with repairs throughout
the extended lockdown period in South Africa. All materials required for repairs were ordered and
available on site ahead of the lockdown, and there were no supply chain disruptions that impacted the
ability to complete the repairs. Safety protocols were implemented on site in line with Government
approvals and regulations. A construction work risk review was completed to determine work phasing,
method of execution, key resource identification and increased health protocols.

The ACP construction repair team was split into two teams that self-isolated for the duration of the repair
work, and COVID-19 specific health protocols were put in place for cleaning, screening and transport to
site. A new shift pattern was introduced that fostered social distancing. Increased site hygiene measures
for sanitisation, together with site safety and health supervision were implemented to ensure safety and
quality of construction. We have reported zero injuries, zero health issues or positive COVID-19 cases
and did not experience any health and safety or construction issues during the repair and ramp up.

The Company’s ability to continue these essential repairs during lockdown has been critical to the
resumption of the processing pipeline. As a result of the incidents at the ACP, and the need to shut
operations to secure a safe operational environment for employees, the Company could not process any
metal to final product during this period. With mining activity resuming to varying degrees under the
current Level 4 lockdown restrictions, the Company is now able to begin processing concentrate and
releasing metal from the pipeline.

5 May 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:

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,
steelmaking and thermal 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: 05-05-2020 08:00:00
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