Marula Platinum

Marula Platinum Limited (Marula) is 73% owned by Implats and is one of the first operations to have been developed on the relatively under-exploited eastern limb of the Bushveld Complex in South Africa. It is located in the Limpopo Province, some 50 km north of Burgersfort. In FY2007 Marula produced 65,000 ounces of platinum in concentrate. The operation consists of an under-ground mine and a metallurgical plant. Annual steady-state production of 130,000 ounces of platinum in concentrate is scheduled for FY2010.

History

Platinum was first discovered in the area by renowned explorer Hans Merensky on the nearby farm Maandagshoek (now Modikwa Platinum) in the 1920’s. In June 1998 Implats entered into an arrangement to acquire the Winnaarshoek property from Platexco, a Canadian based company. The mineral rights to portions of the adjacent farms of Clapham and Forest Hill and a sub-lease to Driekop were subsequently acquired from Anglo Platinum in exchange for Hendriksplaats (now part of Modikwa Platinum) so consolidating the Marula mine area. The exploration programme was then expanded and some 750 surface boreholes were drilled. The establishment and development of the mine, requiring considerable investment from Implats in both infrastructure and environmental protection measures, commenced in October 2002.

Geology

Both the Merensky Reef and UG2 Chromitite Layer are present striking north-south with an average dip of 13 degrees and with a vertical separation of some 400 metres between them. While one prominent dyke and a dunite pipe are present, there is minimal faulting on the property.

Mineral resources as at 30 June 2007

Orebody	Category	Channel tonnes (millions)	Grade (g/t) 3PGE+Au	Grade (g/t) 5PGE+Au	Pt oz (millions)
Merensky	Indicated	50.2	5.12	5.47	4.7
	Inferred	5.2	5.37	5.73	0.5
UG2	Measured	28.6	8.39	9.94	3.4
	Indicated	22.0	8.28	9.80	2.6
	Inferred	3.5	7.50	8.88	0.4
Total		109.5	6.70	7.63	11.6

Mineral reserves as at 30 June 2007

Orebody	Category	Mill tonnes (millions)	Grade (g/t) 3PGE+Au	Grade (g/t) 5PGE+Au	Pt oz (millions)
UG2	Probable	39.5	4.42	5.24	2.5

Note: Mineral Resources are quoted inclusive of Mineral Reserves, see Implats’ Annual Report 2007 for full details.

Marula Platinum Merensky Metals Splits
3PGE+Au
Marula Platinum UG2 Metals Splits
3PGE+Au

Mining

At present Marula mines the UG2 Reef which is accessed via two declines, Clapham and Driekop, which are situated 1.3 km apart and will eventually reach depths of 770 metres. The declines were sunk on-reef from the outcrop at a minor dip of 9.5 degrees, each with three portal entries.

Marula is currently converting to conventional breast mining as the initial mine plan utilising mechanised bord-and-pillar techniques proved unsuccessful due to steeper dips and unexpected rolling of the reef. One of the important aspects of this new mining plan is the change from contractor to owner mining. Production from the new conventional mining plan will begin towards the end of FY2008 with full production scheduled for FY2010.

A pre-feasibility study has been completed on the Merensky Reef and has been presented to the board. The project, incorporating the development of a new decline, concentrator and supporting mining infrastructure will yield 115,000 ounces of platinum annually with a life-of-mine of 20 years. A full feasibility study is currently underway.

Metallurgy

The metallurgical plant which was commissioned in February 2004, consists of a concentrator and a dense media separation plant (DMS). The DMS is currently mothballed due to low throughput. The plant has a capacity of 6,000 tonnes per day, capable of coping with current mine production. Overall recovery rates currently exceed 87%. Concentrate is transported by road to Impala Platinum’s Mineral Processes in Rustenburg in terms of a life-of-mine offtake agreement with Impala Refining Services (IRS).

Black Economic Empowerment

Black economic empowerment forms a key component of the Marula operation and our partners together own 27% of the company. Each of the following parties hold a 9% stake:

• The Marula Community Trust ensuring sustainable benefit flows to the local community over the life of the mine and beyond;
• Tubatse Platinum, a broad based HDSA empowerment consortium from local business; and
• Mmakau Mining, an established mining entity.

Implats as the largest stakeholder brings technical, managerial, financial and operational expertise to the mine.

Sustainable Development

In addition to the BEE equity stakes in Marula, the company is determined to maximise the benefits of the mine for the community even further. Preference is thus given to local contractors and suppliers of goods and services. Through the Impala Community Development Trust, (Implats’ primary social investment vehicle), R5 million was invested in FY2007 in local community structures established to implement sustainable development projects.

Marula key statistics

		FY2007	FY2006	FY2005	FY2004
Production ex mine
Tonnes milled	(000 t)	1,450	971	766	574
Platinum in concentrate	(000 oz)	65.2	40.0	29.8	13.3
PGM in concentrate	(000 oz)	171.4	103.8	77.0	36.6
Mining cost of sales
Mining	(Rm)	472.3	307.9	214.4	66.4
Concentrating	(Rm)	100.2	69.8	78.5	28.3
Total cost
per tonne milled*	(R/t)	395	389	382	165
	($/t)	55	61	62	24
per platinum ounce in concentrate*	(R/oz)	8,781	9,443	9,829	7,120
	($/oz)	1,221	1,478	1,588	1,037
Financial ratios
Gross margin	%	46.3	18.6	(52.1)	(17.9)
Capital expenditure	(Rm)	280	291	118	505
	($m)	39	46	19	74
Safety
LTIFR (per million man hours worked)		1.63	2.01	3.44	3.87
FIFR (per million man hours worked)		0.14	–	0.49	0.20
Labour complement		2,094	1,797	1,226	–

*FY2004 unit costs reflect only stoping operations as development expenditure for the year was capitalised.