1

Progress on implementation of drill jigs at Impala

Investor visit28 October 2005

2

Factors impacting team productivity

• Older shafts with high team efficiencies being replaced by new deep level shafts

• Distance (horizontal) from barrel affecting face time and thus mining cycles (affects blast frequency)

• Traveling time down decline affecting face time (blast frequency affected)

• White area mining (20% of total centares)

2

3

Technology intervention

• Drill-jigs (DDT) technology on the Merensky horizon

• Including in-stope bolting as a support system

4

Potential DDT benefits

• Primary benefits• Safety

• Remove rockdrill operators from danger area• Permanent support close to face• Reduction in number of FOGs

• Secondary benefits• Reduced physical effort• Improved productivity

• Assuming a blast frequency of 19 blasts/month• Potentially 1.2m advance per blast• Realistically 1.0m advance per blast

• Cost or ounce benefit• Reduction in labour complement (natural attrition)

3

5

Drill jigs - Stoping

6

Drill jigs - Stoping

4

7

Drill jigs - Stoping

8

Drill jigs - Gulley

5

9

Team learning curve (built into 5-year plan)

530m²/team

450m²/team

Training+ 1 month bolt lead

± 12 months (Benefits)

± 3 months(breakeven)

± 5 months (Improvement)

± 8 months (Payback)

10

Progress over 7 months – learning curve

360

380

400

420

440

460

480

CA

's/T

eam

CA's / Team 428 423 422 402 450 467 422

Base CA's 425 425 425 425 425 425 425

Ave CA's 428 426 424 419 425 432 431

1st Month 2nd Month 3rd Month 4th Month 5th Month 6th Month 7th Month

YTD = 437Base = 425

Improvement = 3%

Last three months ave. = 446 CA’s

= 5% impr.

6

11

Roof-bolting: Progress of roll-out (as at 22 October 2005)

20 Teams behind schedule

80

100

120

140

160

180

200

Team

s

184 TeamsOct ‘05

12

Drill jig: Progress of roll-out (as at 22 October 2005)

40

50

60

70

80

90

100

110

120

130

Week

Team

s

Actual 48 53 57 58 61 63 64 66 68 69 70 72 75 76 77 77 81

Plan 47 50 55 57 61 64 69 70 75 77 82 85 89 91 95 98 101 104 107109 111 113 115 117 119 121 123

26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52

20 Teams behind schedule

81 Teams on DDT

7

13

Falls of ground

Double Roll-Out

Falls of ground larger than 4m2 - Impala Platinum

48 50 51

812

1611

912

85

11 11

47

1013 11

9 7 813 13 12

16

911

9

18

6 63 5 6

9

15 4

116 4 4 3

0

10

20

30

40

50

60

Month

No.

of F

OG

's

GCDs200mm RS Straps Strocams

In Stope Bolting

14

New technology - flat-end development

• Improved safety, operator removed from face area

• Increased face advance per blast

• Consistent and parallel drilling

• Mini-bolter also designed to utilise same boom and act as a carrier to transport the equipment in and out of the ends.

• Less physical effort required by operators

• Less skill required to drill holes

• First jig currently undergoing trials at 10 shaft

8

15

Factors affecting drill jig implementation

• Slow uptake by above average performing teams.

• Prioritisation of roofbolt roll-out

• Training period takes longer than anticipated.

• Teams require consistent monitoring and coaching after training.

16

Risk associated with DDT implementation

• Lack of total union buy-in

• issue of job losses

• System not properly tested, with regard to:

• Work cycles (especially bolting)

• Machine reliability (breakdowns)

• Supplier back-up

• Machine maintenance

9

17

The way forward

• Drive R&D into and trials on bolters of less than 1m for the UG2 (±85cm)

• Drive R&D into and trials on development technology to ensure availability of developed reserves

• Revisit efficiency improvements in FY2007 and beyond, however FY2006 required as a learning period.

• Continue driving implementation of best practice to maintain and improve current efficiencies, especially on development.

18

Targets for FY2006

Merensky drill jig teams:

455437CAs per team

4240CAs per panel man

18081No. of teams

TargetCurrent

10

19

Envisaged improvement

Ca/Panel Man - DDT Technology (Merensky)

40

42

4647

30

32

34

36

38

40

42

44

46

48

Current RealisticEfficiency

Cen

tare

s / P

anel

Man

0,85madv/blast

19/23blasts

450 Ca's

1,0madv/blast

19/23blasts

472 Ca's

1,0madv/blast

19/23blasts

511 Ca's

1,0madv/blast

19/23blasts

530 Ca's

5%

10%

2%

Progress on implementation of drill jigs at Impala

Investor visit28 October 2005