Name of the Project
Bafokeng Rasimone Platinum Mine (BRPM) North Shaft Merensky Phase III project.

Location
North West, South Africa.

Client
BRPM Joint Venture (JV), comprising Royal Bafokeng Platinum (RBPlat) and Anglo American Platinum (Amplats).

Project Description
The BRPM Phase III project is providing further replacement for Merensky production at the North shaft complex through the extension of the existing decline system from Level 10 to Level 15 at the mine boundary.

At steady state, Phase III will maintain the production level of the North shaft at about 100 000 t/m.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Value
R1.409-billion.

Duration
The project started in November 2010 and is scheduled for completion in 2018.

Latest Developments
The total mining scope of the project has been completed with only construction activities pertaining to services, conveyor belts and associated bulkheads on 14 and 15 levels remaining.

A technical planning review of the Phase III extraction schedule has indicated that these levels will be required to come on line only during the second quarter of 2019.

Capital expenditure for the six months to June 30, 2018, amounted to R21-million resulting in total project expenditure to date of R1.09-billion.

Meanwhile, Amplats agreed in July to accept R1.8-billion for the remaining 33% of the BRPM.

RBPlat currently owns 67% of the BRPM JV and also has management control.

RBPlat intends selling shares to investors for cash in part settlement of the purchase price, and settling the deferred amount in three equal payments over three years, as well as through possible share transacting.

Amplats will retain its right to process 50% of the BRPM’s concentrate for the life-of-mine, and RBPlat will retain its five-yearly termination right on the remaining 50% of concentrate, with the earliest next termination being in 2022.

The proposed transaction will provide RBPlat with an opportunity to expand its reserve base, and enables Amplats to direct capital towards its own projects, rather than to operations where it holds a minority interest.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
The project remains below budget and on schedule.

Contact Details for Project Information
RBPlat executive: corporate affairs Mpueleng Pooe, tel +27 10 590 4515 or email mpueleng@bafokengplatinum.co.za, or investor relations executive Lindiwe Montshiwagae, tel +27 10 590 4517 or email lindiwe@bafokengplatinum.co.za.
Amplats corporate communications, Mpumi Sithole, tel +27 11 373 6246, fax +27 11 373 5846 or email Mpumi.sithole@angloamerican.com.