ASSMANG MANGANESE. Presentation 12 April 2005

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1 Welcome to

2 ASSMANG MANGANESE Presentation 12 April 2005

3 CONTENTS Introduction and Geology Ore Resources Mining Processes & Capabilities Recent History The Future

4 Assmang s manganese mining operations are situated in the Northern Cape Province of South Africa. Assmang Introduction Black Rock Mine Operations J ohann esburg Cato Ridge Durban Cape Town Port Elizabeth

5 Black Rock Introduction to ASSMANG Beeshoek Operates in the Northern Cape Province High Grade Manganese at Nchwaning Low Grade Manganese at Gloria Exports ore through Port Elizabeth and Durban Supplies Assmang Subsidiary Feralloys plant at Cato Ridge

6 Nchwaning 3 * Wessels * * Nchwaning 2 Gloria * KMF divided into HIGH GRADE and LOW GRADE areas Two major grades required by World Market: High + 48 Mn Low + 38 Mn Mamatwan * Inhomogeneous Preparation for converting grade to the new mining licence distribution has reached an within each area advanced stage

7 STRATIGRAPHIC COLUMN OF THE KMF

8 NO 2 Mn OREBODY Mn MARKER NO 1 Mn OREBODY HOTAZEL FORMATION Manganese Orebodies 6 m thick. Parting between No1 and No 2 orebody = 20 m No 2 body lower in Mn and Higher in Fe

9 GLORIA MINING AREA CURRENT MINING DEVELOPMENT

10 NCHWANING MINING AREA CURRENT MINING DEVELOPMENT

11 CONTENTS Introduction and Geology Ore Resources Gloria Nchwaning Orebody No 1 Nchwaning Orebody No 2 Mining Processes & Capabilities Recent History The Future

GLORIA MINING AREA RESOURCES GRADE Measured Indicated Inferred Total > 38% 7,690,930 65,128,908 38,597,425 111,417,263 36 38% 1,864,250 17,608,171

12 GLORIA MINING AREA RESOURCES GRADE Measured Indicated Inferred Total > 38% 7,690,930 65,128,908 38,597, ,417, % 1,864,250 17,608,171 10,435,152 29,907,573 < 36% 31, ,452 21,220,071 21,494,649 TOTAL 9,586,306 82,980,531 70,252, ,819,485 GRADE DISTRIBUTION Mn < 36 % Mn % Mn > 38 %

NCHWANING MINING AREA No 1 Ore body Mn < 46 % Mn 46 48 % Mn > 48 % GRADE Measured Indicated Inferred Total > 48% 3,299,083

13 NCHWANING MINING AREA No 1 Ore body Mn < 46 % Mn % Mn > 48 % GRADE Measured Indicated Inferred Total > 48% 3,299,083 63,780,416 67,079, % 1,564,436 10,999,802 12,564,238 < 46% 3,983,415 64,588,325 68,571,740 TOTAL 8,846, ,368, ,215,477

NCHWANING MINING AREA No 2 Ore body Mn < 46 % Mn 46 48 % GRADE Measured Indicated Inferred

14 NCHWANING MINING AREA No 2 Ore body Mn < 46 % Mn % GRADE Measured Indicated Inferred Total > 48% % 1,845,834 1,845,834 < 46% 180,112, ,112,897 TOTAL 181,958, ,958,731

15 CONTENTS Introduction and Geology Ore Resources Mining Processes & Capabilities Recent History The Future

16 ROOM & PILLAR MINING ( 7 x 7 m pillars, 8 m wide Roadways) BLASTING ON DAY SHIFT ( Face advance between 3.3 and 4.0 m) 12 t LHD & 25 t BELL TRUCKS MOVE ORE TO NEAREST CONVEYOR UNDERGROUND CRUSHING TO 150 mm

17 WASHING & SCREENING PLANT ON SURFACE ORE IS SPLIT INTO VARIOUS SIZE FRACTIONS SURFACE t EACH TRACKED ON COMPUTER SELECTED SURFACE STOCKPILES LOADED ONTO TRAINS

18 INSTALLED CAPACITIES Total current hoisting capabilities are 5.8 mtpa Nch 2 vertical 1.6 Mtpa (High Grade) Nch Mtpa (High Grade) Gloria 1.4 Mtpa (Low Grade) Current surface plant capacities are 4.5 Mpta Gloria Surface 1.83 Mtpa Nchwaning surface 2.67 Mtpa Ore loading and Rail capacity ± 3.5 Mtpa Estimated capacity of Port Elizabeth Harbour ± 4.2 Mtpa

19 CONTENTS Introduction and Geology Ore Resources Mining Processes & Capabilities Recent History Financials Nchwaning 3 project The Future

20 OPERATING PROFIT/REVENUE RATIO 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 46.58% 39.05% 44.28% 54.75% 45.53% 28.81% 0.00% 98/99 99/00 00/01 '01/02 '02/03 '03/04

21 OPERATING PROFIT (R 000) R450,000 R400,000 R350,000 R300,000 R250,000 R200,000 R150,000 R100,000 R50,000 R0 R234,557 R168,202 R239,416 R401,312 R333,545 R207,227 98/99 99/00 00/01 '01/02 '02/03 '03/04

22 REVENUE (R 000) R800,000 R700,000 R600,000 R500,000 R400,000 R300,000 R200,000 R100,000 R0 R503,603 R430,740 R540,718 R732,997 R732,529 R719,314 98/99 99/00 00/01 '01/02 '02/03 '03/04

23 RECENT COST/TON FIGURES R180 R160 R140 R120 R100 R80 R60 R40 R20 R0 R170 R163 R140 R158 R175 R168 98/99 99/00 00/01 '01/02 '02/03 '03/04

24 RECENT SALES PROFILE 1,800,000 1,600,000 1,400,000 1,200,000 1,000, , , , , ,475,060 1,360,171 1,444,961 1,403,615 1,581,560 1,794,155 98/99 99/00 00/01 '01/02 '02/03 '03/04

25 RECENT CAPITAL EXPENDITURE Rm /00 00/01 '01/02 '02/03 '03/04

26 NCHWANING 3 Objectives Achieve a 20% reduction in unit operating cost Loader and hauler operations are to be separated Underground facilities required to handle multiple grades simultaneously Minimize ore handling between face and surface plant

27 Nchwaning 3 WHY? To replace diminishing reserves Establish low cost mine Provide for Future Growth Shaft infra structure WHAT? Men & Material Shaft 5.6m dia & 419m deep Vent shaft 5.6m raisebored Decline 4.4 x 8.2m x degrees

28 NCHWANING 3 PROJECT STATUS Project Start Date was June 1999 Planned completion date August 2003 Revised completion date March 2005 Planned capital cost R 517 million Revised capital cost R 775 million Delays and Additional costs due to: Design changes Delays due to water and ground conditions Main contractor defaulting

29 26 May 2004 First production of high grade ore from the underground mining operation

30 NCHWANING 3 PROJECT Contingency plan In order to offset the negative effects of the delayed project a temporary ore pass was introduced This allowed for production tons since 26 May 2004 All the production was specifically suited to Cato Ridge, resulting in improved efficiencies.

31 Decline Shaft Ventilation Shaft Persons Shaft Upper Silo Tunnel Lower Silo Tunnel Workshop Current Run of Mine Bunkers Underground Development Crusher

32 The commissioning of the Nchwaning 3 mine marks the beginning of a new era in the long history of Assmang. The future of Assmang as a reliable supplier of high quality manganese ore is assured.

33 CONTENTS Introduction and Geology Ore Resources Mining Processes & Capabilities Recent History The Future

34 THE FUTURE ASSMANG have access to an excellent high grade orebody on the No 1 manganese seam. ASSMANG can relatively easily access and mine the No 2 medium grade orebody to supply blast and electric furnaces. ASSMANG has made significant capital investments to position for future demand. Sales volumes are increasing while operating costs are improving. ASSMANG is actively pursuing continuous improvement policies

35 FUTURE PLANS FUTURE PLANS ASSMANG aims to be a reliable supplier of high grade ore for the next 30 years. ASSMANG aims to significantly grow market share in China by supplying medium grade to the blast and electric furnaces. This strategy could see a doubling of ore output within the next 6 to 8 years. ASSMANG is committed to optimising the available ore resources by constructing DMS and Sinter facilities by ASSMANG will remain aggressively involved in the logistics of ore transport and shipping to ensure the anticipated volume growth

36 CONCLUSION At ASSMANG energy is not everything. it is the only thing. We do it better!

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