The additional metal will be sourced from a number of new mines as well as the expansion of existing mines in South Africa.

The expansion is in accordance with the Group’s stated strategy of developing the market for platinum group metals and expanding into growth opportunities thus created. At the same time the new operations will provide additional flexibility and lower the unit cost of production.

Amplats has already announced that a new mine, Maandagshoek, producing 162 000 ounces and costing R1,3 billion in 2000 money terms, will come into operation by 2004. The Group will announce further mines and expansions as and when they are approved by the Board. The current cost estimate for the additional mining and associated processing expansions is R12,6 billion (in 2000 money terms). The capital expenditure will be funded from operating cash flows and borrowings.

The expansions will result in some 13 000 new jobs being created. Furthermore, this considerable investment, together with the significant foreign exchange generated from the sale of the additional metal, will favourably impact on the South African economy to the benefit of all stakeholders.

Amplats is continuing with, and accelerating, its discussions to include meaningful black economic empowerment initiatives in the South African mining industry in certain of its expansions.

For further information contact

Johan Adler:
Tel: (011) 373-6637
Cell: 083 627-3918

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BACKGROUND INFORMATION

1. Background

The Anglo American Platinum Corporation Group (Amplats) is the world’s leading primary producer of platinum group metals (PGMs). Its operations, comprising six mines, two smelters, a base metals refinery and a precious metals refinery, are situated in the Northern and North West provinces of South Africa.

In addition to its current operations, Amplats has access to an excellent portfolio of mineral reserves to ensure that the company is well placed to strengthen and maintain its position as the world’s leading platinum producer. Amplats is managing these mineral reserves for the optimum benefit of all its stakeholders. Its continued commitment to increasing demand is done via substantial investment in research and development into new uses for PGMs predominately through Johnson Matthey plc, and global jewellery promotional campaigns through the Platinum Guild International (PGI).

2. Current production and previously announced expansions

In 1999, Amplats produced over 2,0 million ounces of platinum and over 1,0 million ounces of palladium, constituting 42% and 12% of the world supply respectively. In addition to the current operations, a number of significant expansion plans have been announced to bring the Group’s total platinum production to approximately 2,5 million ounces by the end of the calendar year 2003.

Pt oz ('000) As from
Current production* 2 019
Rustenburg Platinum Mines Limited (RPM) 1 739
Potgietersrust Platinums Limited (PPL) 201
Lebowa Platinum Mines (LPM) 79
Expansion projects announced 519
Bafokeng-Rasimone - BRPM 250 Mid 2002
Amandelbult UG2 - RPM 72 Mid 2000
Middelpunt Hill Expansion - LPM 35 4 Qtr 2000
Maandagshoek Platinum Mines 162 End 2002
Total production 2 542
* Excluding the current BRPM production of 4 200 ounces
** Time from which full production is expected

3. Review of platinum market fundamentals

Amplats’ on-going assessment of supply and demand fundamentals for platinum indicates more favourable medium-term jewellery, industrial and autocatalyst demand prospects than previously anticipated.

As a result of this expectation and a reduction in Russian supplies, consequent on depletion of stocks, an increased supply gap is expected to emerge.

4.Principle platinum and palladium demand aspects

4.1.Palladium
- Currently gross autocatalyst demand for palladium approximates newly mined supply. In order to meet demand from all sectors, dependence on supplies from Russian stockpiles is expected to continue.

- Notwithstanding some substitution in the electronics and dental sectors, net growth in demand is likely to increase as a result of more stringent limits on motor vehicle emissions standards.

4.2. Platinum
4.2.1. Autocatalysts

Growth in the autocatalyst sector is expected to be higher than previously forecast as a result of growth in three major areas, namely:

(i) Tightening legislation governing emissions
- In the United States, stringent legislation governing emissions on heavy-duty vehicles is to be phased in from 2003.
- The majority of these heavy-duty vehicles contains large diesel engines with relatively large platinum loadings.
- By 2008 all of these vehicles will have to be fitted with autocatalysts.

(ii)Diesel vehicles
- The predominant catalyst technologies are platinum-based and with the expectation of growth in sales of diesel vehicles in Europe, platinum off-take is forecast to increase.

(iii)Direct injection gasoline cars
- Direct injection gasoline vehicles are expected to use platinum-predominant catalyst technologies.
- Production of direct injection gasoline vehicles is expected to increase in Europe over the next few years as a result of pressure on the European Union to significally reduce the limit on sulphur content of vehicle fuels.

In addition, there is a growing awareness in the auto industry of the reliance on Russian sales from stocks to meet palladium demand. Consequently, the anticipation of a shortfall in supply is encouraging manufacturers to substitute palladium with platinum-based autocatalyst technology.

4.2.2. Industrial demand
- Growth in industrial demand is centered on platinum use in hard disks in the high growth computer market. At present, 58% of hard disks contain platinum and this percentage is expected to increase substantially.
- Additional growth is also expected in chemical sector demand as a result of rising silicone production.

4.2.3. Jewellery
(i) China
- Demand in China has grown faster than expected, notwithstanding recent price fluctuations.
- Demand is expected to continue to grow and is supported by the jewellery manufacturing industry’s investment in additional capacity.

(ii)United States
- With positive economic indicators reflecting the underlying strength in the economy, expansion in jewellery manufacturing capacity, and an increasing trend towards white metal fashion jewellery, growth in demand is expected to continue.
- Demand is expected to continue to grow and is supported by the jewellery manufacturing industry’s investment in additional capacity.

(iii) Other markets
- Good demand will be sustained by effective investment in market development via the PGI.

5. Planned expansions

Amplats has taken the decision to increase its production from the 1999 calendar year base of some 2 million ounces to 3,5 million ounces by the end of 2006.

The additional