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ANGLO AMERICAN PLATINUM LIMITED - Anglo American Platinum closes ACP Phase B resulting in temporary build up in work-in-progress inventory

Release Date: 05/11/2020 09:26
Code(s): AMS     PDF:  
Wrap Text
Anglo American Platinum closes ACP Phase B resulting in temporary build up in work-in-progress inventory

(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 closes ACP Phase B resulting in temporary build up in work-in-
progress inventory

Anglo American Platinum has made the pre-emptive decision to close the Anglo Converter Plant (ACP)
Phase B unit, following a series of water leaks, to ensure an ongoing safe operating environment, protect
employees and protect the integrity of the plant and surrounding processing assets.

Natascha Viljoen, CEO of Anglo American Platinum states:

“As indicated in our Q3 production report on 22 October, the ACP Phase B unit has been fragile and has
unfortunately recently experienced a number of further instances of water leaks. Whilst the ACP
management team has done extraordinary work to keep the unit operating safely over the past several
months, we have taken this pre-emptive decision to now close the ACP Phase B unit to ensure we protect
our employees, operating environment and the integrity of our assets. Whilst this early closure will result
in a temporary build up in work-in-progress inventory, we continue to make good progress with the rebuild
of the main ACP Phase A unit, which we expect to complete towards the end of this year.”

Increased monitoring, controls and systems were implemented to continually assess the ACP Phase B
unit and further water leaks were discovered. The ACP Phase B unit underwent a planned and measured
shutdown. Whilst the ACP management team has been able to complete repairs to previous water leaks,
after a comprehensive assessment, and with further water leaks discovered, the ACP Phase B unit now
requires more extensive repair work. As a result, the ACP Phase B unit has been closed for a full rebuild
in 2021.

As at 31 October 2020, the Company has refined 2.4 million PGM ounces. As production continues at
c.94% of normal production levels, the closure of ACP Phase B unit until ACP Phase A unit is
recommissioned will result in an increase in work-in-progress inventory, whose release will commence
once the ACP is operational. The Company has made significant progress with the Phase A unit and
remains on track to commission it before the end of this year, ahead of the original schedule of Q2 2021.

As a result of the closure of the ACP Phase B unit, the Company has lowered its refined production and
sales guidance for 2020 to c.2.5 million PGM ounces (previously 3.1-3.3 million PGM ounces). There is
no change to other guidance, including M&C production which remains at between 3.6 – 3.8 million PGM
ounces. The Company has contingency plans in place and will be engaging with customers to minimise
any disruption to contractual obligations.

As at 31 October 2020, the Company remains in a net cash position of c.R28 billion (unaudited) and has
R25 billion of committed facilities available.

5 November 2020

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          

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.

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 operations, development
projects and undeveloped resources, provides many of the metals and minerals that enable a cleaner,
greener, more sustainable world and that meet the fast growing consumer-driven demands of developed
and maturing economies. With our people at the heart of our business, we use innovative practices and
the latest technologies to mine, process, move and market our products to our customers – and to
discover new resources – safely and sustainably.

As a responsible producer of diamonds (through De Beers), copper, platinum group metals, the
steelmaking ingredients of iron ore and metallurgical coal, and nickel – with crop nutrients in development
and thermal coal operations planned for divestment – we are committed to being carbon neutral across
our operations by 2040. We work together with our business partners and diverse stakeholders to unlock
sustainable value from precious natural resources for the benefit of the communities and countries in
which we operate, for society as a whole, and for our shareholders. Anglo American is re-imagining mining
to improve people’s lives.

Date: 05-11-2020 09:26:00
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