Focus on the business
OUR BUSINESS MODEL: HOW WE CREATE VALUE
Our vision: To grow the business into a long-life, major producer of PGMs, and doing this safely and efficiently while continuously moving down the cost curve.
OUR BUSINESS
ASSESSING, DEVELOPING AND ECONOMICALLY MINING PGM-BEARING ORE BODIES
- Zondereinde – deep-level, mining UG2 and Merensky ore
- Booysendal – shallow, fully mechanised UG2 mining operation
MINERALS PROCESSING
- Merensky and UG2 concentrator plants – crushing, milling, flotation
- Metal in concentrate produced
- Zondereinde incorporates metallurgical complex – smelter, base-metal recovery plant
REFINING
Northam’s production refined at:
- Heraeus refinery, Hanau, Germany
- Heraeus plant, Port Elizabeth, South Africa
MARKETING
In-house department responsible for marketing and sales of metals in sponge or ingot form:
- Domestically
- To major global markets in Asia, Europe, North America
OUR STRATEGY
Our strategy is based on:
GROWTH
- Underpinned by empowerment transaction
- Acquisition of Everest
- Development of Booysendal South
- Smelter expansion
DIVERSIFICATION
- Mechanisable orebodies
- Lower cost production
- Shallow workings
OPTIMISATION
- Husbanding Merensky reef
- LoM extension at Zondereinde to more than 20 years
- Improved access to Merensky reef on 18 level via decline system
- Solving metallurgical constraints to treat more UG2 ore
- Ramp up to full production at Booysendal
- Extension of Booysendal deepening project
INPUTS
F FINANCIAL
- Capital expenditure: R1.2 billion
- Cash balance: R3.1 billion
M MANUFACTURED AND INTELLECTUAL
- Plant, machinery, equipment and infrastructure: R7.9 billion
- Investment into research and development in terms of time, people and effort to improve safety, efficiencies and mining methods
H HUMAN
- 11 312 employees (including contractors)
- Training and development spend:
LA R21.0 million spent at Zondereinde
LA R3.2 million spent at Booysendal
N NATURAL
- Mineral reserve: 24.5Moz
- Mineral resource: 200.3Moz
OUTPUTS
M MANUFACTURED
- 4.2Mt milled – 2.0Mt at Zondereinde; 2.2Mt at Booysendal North
- 13 591kg of metal produced from own operations
- Total refined metal sales of R6.1 billion:
- Platinum 270 194Moz
- Palladium 134 101Moz
- Rhodium 42 632Moz
- Gold 5 466Moz
- Total: 452 393Moz
OUTCOMES
F FINANCIAL
- R479.2 million to taxes and royalties
- R39.6 million to providers of capital, excluding Zambezi preference shares
H HUMAN
- R1.8 billion to salaries, wages and other benefits
SOCIAL
- R3.5 million to corporate social responsibility
IMPACTS
H HUMAN
Accommodation:
- LA 368 housing units sold to employees
- 2 440 single units created
- Employee accommodation and upgrades:
R24.4 million spent at Zondereinde
R14.3 million spent at Booysendal
Safety:
- Zero fatalities
- LA 1.92 LTIIR at Zondereinde
- LA 0.44 LTIIR at Booysendal
Health:
- R68.8 million contributed to health care funds
- 2 153 employees received VCT
- 72 new cases of NIHL
N NATURAL
- Water consumption increased by 12% to 4 786 000m³
- Electricity consumption at Zondereinde increased by 3% to LA 646 785MWh
- Electricity consumption at Booysendal increased by 15% to LA 132 790MWh
- CO2 emissions 844 824 tonnes
- SO2 emissions LA 6 987 tonnes