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ANGLO AMERICAN PLC - Anglo American Platinum closes ACP Phase B resulting in temporary build in work-in-progress inventory

Release Date: 05/11/2020 09:05
Code(s): AGL     PDF:  
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Anglo American Platinum closes ACP Phase B resulting in temporary build in work-in-progress inventory

Anglo American plc (the "Company")
Registered office: 20 Carlton House Terrace, London SW1Y 5AN
Registered number: 3564138 (incorporated in England and Wales)
Legal Entity Identifier: 549300S9XF92D1X8ME43
JSE Share Code: AGL
NSX Share Code: ANM

5 November 2020

Anglo American Platinum closes ACP Phase B resulting in temporary build in work-in-
progress inventory

Anglo American plc notes the announcement by Anglo American Platinum Limited released today
to the Johannesburg stock exchange. The text of the announcement is copied below:

Anglo American Platinum has made the pre-emptive decision to close the Anglo Converter Plant
(ACP) Phase B unit, following a series of water leaks, to ensure an ongoing safe operating
environment, protect employees and protect the integrity of the plant and surrounding processing

Natascha Viljoen, CEO of Anglo American Platinum states:

“As indicated in our Q3 production report on 22 October, the ACP Phase B unit has been fragile
and has unfortunately recently experienced a number of further instances of water leaks. Whilst
the ACP management team has done extraordinary work to keep the unit operating safely over
the past several months, we have taken this pre-emptive decision to now close the ACP Phase
B unit to ensure we protect our employees, operating environment and the integrity of our assets.
Whilst this early closure will result in a temporary build up in work-in-progress inventory, we
continue to make good progress with the rebuild of the main ACP Phase A unit, which we expect
to complete towards the end of this year.”

Increased monitoring, controls and systems were implemented to continually assess the ACP
Phase B unit and further water leaks were discovered. The ACP Phase B unit underwent a
planned and measured shutdown. Whilst the ACP management team has been able to complete
repairs to previous water leaks, after a comprehensive assessment, and with further water leaks
discovered, the ACP Phase B unit now requires more extensive repair work. As a result, the ACP
Phase B unit has been closed for a full rebuild in 2021.

As at 31 October 2020, the Company has refined 2.4 million PGM ounces. As production
continues at c.94% of normal production levels, the closure of ACP Phase B unit until ACP Phase
A unit is recommissioned will result in an increase in work-in-progress inventory, whose release
will commence once the ACP is operational. The Company has made significant progress with
the Phase A unit and remains on track to commission it before the end of this year, ahead of the
original schedule of Q2 2021.

As a result of the closure of the ACP Phase B unit, the Company has lowered its refined
production and sales guidance for 2020 to c.2.5 million PGM ounces (previously 3.1-3.3 million
PGM ounces). There is no change to other guidance, including M&C production which remains
at between 3.6 – 3.8 million PGM ounces. The Company has contingency plans in place and will
be engaging with customers to minimise any disruption to contractual obligations.

As at 31 October 2020, the Company remains in a net cash position of c.R28 billion (unaudited)
and has R25 billion of committed facilities available.

For further information, please contact:

Media                                                Investors
UK                                                   UK
James Wyatt-Tilby                                    Paul Galloway        
Tel: +44 (0)20 7968 8759                             Tel: +44 (0)20 7968 8718

Marcelo Esquivel                                     Robert Greenberg         
Tel: +44 (0)20 7968 8891                             Tel: +44 (0)20 7968 2124

Katie Ryall                                          Emma Waterworth              
Tel: +44 (0)20 7968 8935                             Tel: +44 (0)20 7968 8574

South Africa
Sibusiso Tshabalala
Tel: +27 (0)11 638 2175

Nomonde Ndwalaza
Tel: +27 (0) 11 638 0228

Notes to editors:

The ACP plant is a key part of Anglo American Platinum’s PGM production process, treating
furnace matte from the company’s smelters. At the ACP plant, sulphur and iron contained in the
furnace matte from the smelters are converted to sulphur dioxide and slag. The resulting
converter matte is then slow-cooled to concentrate PGMs into a metallic fraction. From the ACP,
material moves to the Magnetic Concentration Plant (MCP), where the converter matte is milled
and the PGM fraction is separated magnetically. The PGM-bearing material then moves from the
MCP to the Precious Metals Refinery (PMR), where the PGMs are separated and purified to yield
platinum, palladium, iridium, rhodium, ruthenium and gold.

Anglo American is a leading global mining company and our products are the essential
ingredients in almost every aspect of modern life. Our portfolio of world-class competitive
operations, development projects and undeveloped resources, provides many of the metals and
minerals that enable a cleaner, greener, more sustainable world and that meet the fast growing
consumer-driven demands of developed and maturing economies. With our people at the heart
of our business, we use innovative practices and the latest technologies to mine, process, move
and market our products to our customers – and to discover new resources – safely and

As a responsible producer of diamonds (through De Beers), copper, platinum group metals, the
steelmaking ingredients of iron ore and metallurgical coal, and nickel – with crop nutrients in
development and thermal coal operations planned for divestment – we are committed to being
carbon neutral across our operations by 2040. We work together with our business partners and
diverse stakeholders to unlock sustainable value from precious natural resources for the benefit
of the communities and countries in which we operate, for society as a whole, and for our
shareholders. Anglo American is re-imagining mining to improve people’s lives.

The Company has a primary listing on the Main Market of the London Stock Exchange and
secondary listings on the Johannesburg Stock Exchange, the Botswana Stock Exchange, the
Namibia Stock Exchange and the SIX Swiss Exchange.

RAND MERCHANT BANK (A division of FirstRand Bank Limited)

Date: 05-11-2020 09:05:00
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