SAFETY
Regrettably, four employees lost their lives at Amplats during the first quarter. We extend our sincere condolences to their families, friends and colleagues.

At 1.22, the lost-time injury frequency rate (LTIFR) is better than the 1.31 seen in the first quarter of 2010, but slightly worse than the 1.17 achieved during 2010 as a whole. Clearly, safety has been a major concern during the quarter. We experienced more safety stoppages in the first quarter of 2011 than during the whole of last year. The very high number of safety stoppages led to regular breaks in production momentum. As a result we completely reviewed all safety-related issues. In the process we engaged with our colleagues from Labour unions and the Department of Minerals Resources, as we remain committed to, and supportive of, all safety improvement initiatives. By the end of the quarter the extraordinary safety stoppages had come to an end, and we have been striving to ensure the continued implementation of the safety-improvement initiatives we have been working on for PLATINUM the past three years. We are confident that we are back on track in our journey to ‘zero harm’.

OPERATIONS
Refined platinum production of 533 koz was 19% better than production during the first quarter of 2010. At 568 koz, equivalent ounces were down 5% on production in the first quarter of last year. The lower production was a direct result of the extraordinary safety stoppages. Nevertheless, the production deficit was partly made up from other sources. Tonnes from surface materials increased by 44% or 234 kt year on year while Mogalakwena Mine milled 14% more volume over the same period. Production from our own mines was 368 koz – down 10 koz or 3% year on year. This was the result of a 6% decline in area mined. Bathopele, Tumela and Dishaba contributed the most to the lower production offset by higher volume at Mogalakwena and new ounces from Unki.

Joint ventures reported lower production volumes with equivalent refined platinum ounces, inclusive of both mined and purchased production net of concentrate sold, down 6% at 181 koz. Safety stoppages together with reduced face availability, unprotected strike and flooding contributed to the reduction in production.

Productivity declined by 15% from 6.83m2 per employee per month in Q1 2010 to 5.82m2 per employee per month in Q1 2011. This was a direct result of the lower-than-planned area mined. During the period the labour complement was below the planned level. Work done to improve grade bore fruit – the built-up head grade increased by 2% year on year from 3.08g/t to 3.14g/t in the first quarter of 2011. As the weighting of higher-grade platreef ore at Mogalakwena increases and as the underground volumes increase, the grade is expected to improve further.

Costs were also directly affected by the lower area mined. At R12 728 per equivalent refined platinum ounce, they are some 9% higher than the R11 730 per equivalent refined platinum ounce in 2010. At R480, the cost per tonne milled compares favorably with the cost of R493 per tonne milled in the last quarter of last year. Actual expenditure was well controlled; and with improved production from underground mines, costs per ounce will improve.