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BUSINESS PLAN

BLUE RIDGE PLATINUM

November 2019
 Executive Summary
Blue Ridge Platinum Pty Ltd (“Blue Ridge”) is presently owned by Imbani Platinum SPV Pty Ltd (50%)
and Ridge Mining Pty Ltd (50%) and is a UG2 project situated approximately 130 kilometres from
Johannesburg on the eastern limb of the Bushveld Complex. Blue Ridge is an underground mine
producing a PGE concentrate containing 125,000 ozs Platinum, Palladium, Rhodium and Gold (4PGE)
from the mining and processing of 120,000 tonnes of UG2 ore per month. A previous feasibility study,
which was completed in November 2007, produced positive economic returns but the shareholders
performed further optimisation studies based on the mining of a narrower, higher grade portion of the
UG2 reef, the negotiation of improved terms for the sale of concentrate and the acquisition of additional
resources contiguous to the original Blue
Ridge Mineral Reserve. Ridge Mining started exploration in 2001 and completed a FS by the end of
2005. Mine development started in January 2007 and Aquarius acquired Ridge in July 2009. The mine
was placed on care and maintenance in 2011, on the back of depressed PGM prices, and has remained
on care and maintenance ever since. Sibanye-Stillwater owns its 50% stake in the JV following its
acquisition of Aquarius in 2016.
Blue Ridge Platinum (Pty) Ltd is the holder of a converted mining right under DMR Ref No
LP30/5/1/2/2/177 MR (Blue Ridge MR), valid from 21 May 2014 to 20 May 2044, in respect of a
mining area totalling approximately 1,889.0ha.
The orebody targeted is the UG2 Reef of the BC, with mineralisation varying in thickness from 60cm to
130cm. Mineralisation occurs as A, B and C chromitites locally separated by internal pyroxenites.
The Blue Ridge orebody is preserved in an enclave on the eastern flank of the Dennilton Dome, a
positive feature in the floor rocks to the BC and which outcrops southeast of Groblersdal.
This mining operation remains under care and maintenance and the Group is currently considering its
strategic options to maximise value from its shareholding in the JV. No exploration work has been
undertaken on this operation since being placed under care and maintenance in 2011.

The concept of mining an Efficient (higher grade) Cut is based on the knowledge that the grade of
PGE’s is loaded towards the lower portion of the UG2 reef. The Efficient Cut mining method enables
the higher grade portion of the reef to be extracted leaving the lower grade portion in the hanging wall
by taking advantage of the unique geological setting of the UG2 at Blue Ridge.
The practicality and safety of the Efficient Cut mining method has been thoroughly tested in an
extensive trial mining exercise whereby a 200 metre decline shaft was developed along reef and 6,000
tonnes of ore extracted. A sample of the extracted ore was used for a second pilot scale test which
reconfirmed the metallurgical recoveries of the ore. This mining method was further proved up during
actual mining during the period December 2007 to July 2011.

Ridge Mining PLC developed the Blue Ridge mine during 2008 at a total cost of R2.5 billion and the
process plant, which has a design capacity of 120,000 tonnes per month, was commissioned during
March 2009. The mine was sold to Aquarius Platinum (AQP) on 01 July 2009 when the mine was at
steady state production, producing 120,000 tonnes per month from underground. However, on
acquisition AQP retrenched the management team and senior staff employed at the mine, outsourced the
management and operation of the mine to Murray & Roberts Cementation based on a cost plus
agreement (payment for tonnes mined without penalties for poor quality tons). An apparent lack of
supervision and poor geological control applied underground resulted in excess grade dilution and
reduced ore available to the concentrator plant for processing. The mine was then put on Care and
Maintenance during 2011 pending additional a fund raising, which never materialised.

A new Mine Start-up Strategy was developed during March 2017 to further optimize the production
processes using historical performance as a basis for the redesign. The results are recorded in
comprehensive Blue Ridge Mine Start-up Strategy Document – March 2017 and the results will not be
duplicated in this document. However, the key statistics and economic results are summarised in the
table below:
 Mineral Resources Measured, Indicated & 51.1mt grading 3.2 g/t (3PGE+Au)
Inferred

Ore Reserves* Proved & Probable 21.7mt grading 3.3g/t (3PGE+Au)

Mining Method Underground 3 decline shafts

Project Operation Processing Rate 120,000 tpa

Metallurgical Recovery 83%
Mine Life 18 years (including development)
Concentrate produced 18,000 tpa

Metal Production Platinum (oz p.a.) 75,000

Palladium (oz p.a.) 35,000
Rhodium (oz p.a.) 13,000
Gold (oz p.a.) 1,600
Total (oz p.a. 4E) 124,600

Basket Price US$/4E Oz US$ 1,463

Cash Operating Costs US$/4E Oz US$ 744

Annual free cash flow ZAR Million 451

Net Free Cash Flow Real ZAR Million 7, 721

NPV @ 10% DCF ZAR Million 2,972

IRR (Real) % 69%

Redevelopment cost Included – ZAR Million 551

Pricing

The cash operating cost assumption for Blue Ridge is $660/oz to produce platinum, palladium, rhodium
and gold, giving an expected payback period of five years. The first concentrate from the mine was
shipped in April 2009. In September 2010, it was decided to redevelop the mine and install
infrastructure because of sub-optimal mine design and low rand basket prices prevailing at that time.
The redevelopment project began in the last quarter of 2010.
During the redevelopment, the company concluded that the mine will not produce sufficient margins to
justify further development spendings. It was found out that at the existing low rand PGM (platinum
group metals) prices and the rate of mine cost inflation in the country, the mine cannot operate
economically. As a result, the company froze mining operations and further development in the second
quarter of 2011. Operations are expected to remain suspended until the rand PGM basket price
improves.

Platinum price US$ 800.00/Oz

Palladium Price US$1550.00/Oz
Rhodium Price US$4750.00/Oz
Gold Price US$1390.00/Oz

GEOLOGY TYPE

Igneous complex
Expand

The Blue Ridge project is situated about 30km south-east of Groblersdal, South Africa.
Aquarius Platinum’s Blue Ridge project is situated on the Blaauwbank farm, about 30km south-east of
Groblersdal, on the eastern limb of the Bushveld Igneous Complex (BIC), South Africa. The project was
originally owned by Ridge Mining, which Aquarius acquired in July 2009.

The eastern limb of the BIC, like the rest of the complex, consists of distinct rock strata, including three
PGE-bearing layers known as reefs, with one being the UG2 chromitite reef.
The PGEs in the UG2 chromitite occur primarily in discrete mineral phases, varying from sulphide
assemblages (predominantly cooperite, braggite, malanite and laurite) to those consisting of a significant
component of alloys (such as Pt-Fe alloy) or various telluride, bismuthinide, bismuthotelluride, arsenide
and sulpharsenide phases.

Total Measured, Indicated and Inferred resources are put at 81.85Mt, giving a contained 4PGE figure of
8.38Moz at an average grade of 3.19g/t. Total proved and probable reserves are nearly 25.08Mt to give a
contained 4PGE figure of nearly 2.42Moz at 3g/t.
1.0 LOCATION

1.1 MAGISTERIAL DISTRICT

The Blue Ridge project area falls under the Groblersdal Magisterial district within the
Sekhukhune Cross Border District Municipality under the Greater Groblersdal Local
Municipality.

The project is located on the R33 road with the nearest urban centre being Groblersdal, 30 km to
the west with a population of approximately 5,000. A number of settlements are located within
30 km of the project area. These include amongst others:

 Motetema to the northwest;

 Tafelkop to the north northwest;
 Nkadimeng and Monsterlus to the north;
 Mathula to the north north-east;
 Sehlakwane and Hlogotlou to the northeast.
 Figure 5.1 indicates the regional location of the project site area.

Figure Location.1: Regional Setting

2.0 TENURE

2.1 MINERAL RIGHTS

This feasibility study was predicated solely on the Mineral Resources contained in the
Blaauwbank block which is constrained to the North by a 500m throw fault and down-dip by the
Steelpoort Fault. The remaining mineral rights on Millennium would comprise a separate mining
block and will be subject to future feasibility studies which will significantly extend the scope of
the mine.
Mining licence number 23/2004 was granted by the Department of Minerals and Energy under
the Minerals Act 1991 on 30 April 2004. This licence has already been converted into a “new
order” mining right under the Minerals and Petroleum Resources Development Act 2002.

Table Tenure.1 lists the farm portions covered by the mining licence.

Table Tenure.1: Mining Licence

Mining Licence Farm & portion Area (hectares)

Blaauwbank 168JS Ptn. 2 528.3560

Blaauwbank 168JS Ptn. 14 173.0025
Blaauwbank 168JS Ptn. R/e 15 513.5040
Blaauwbank 168JS Ptn. 16 260.3857
Blaauwbank 168JS Ptn. R/e Farm (5/6) 413.8263

Additional mineral rights were obtained following the acquisition agreement with Lonmin to
acquire the Millennium rights (excluded from the economic returns and production profiles listed
in the existing mine plans. Similarly, although rights to mine chrome are held by Blue Ridge, the
sale of Chrome has been excluded from current financial models and this will form a definite
optimisation should the Chrome be extracted and sold.
Figure Tenure.2: Lonmin Mineral Rights Holdings acquired by Blue Ridge
 Table Tenure.2: Millenium Mineral Rights
Millenium Rights Farm & portion Area (hectares)

Blaauwbank 168JS Ptn. 10 199.536

Blaauwbank 168JS Ptn. 11 198.268
Haakdoorndraai 169JS Ptn. 9 136.150
Haakdoorndraai 169JS Ptn. 25 57.481
Haakdoorndraai 169JS Ptn. 26 92.855
Haakdoorndraai 169JS Ptn. 27 34.268
Haakdoorndraai 169JS Ptn. 31 110.853
Haakdoorndraai 169JS Ptn. 5 88.963
Haakdoorndraai 169JS Ptn. 32 110.024
Haakdoorndraai 169JS Ptn. 35 99.402
Haakdoorndraai 169JS Ptn. RE 83.589
Haakdoorndraai 169JS Ptn. 36 175.354
Rietkloof 166JS Ptn 3 2138.61
Rietkloof 166JS Ptn 1 1674.1

None of the properties tabled above have been included in the reserve estimation.

2.2 SURFACE HOLDINGS

2.2.1 Blue Ridge Owned Land

Blue Ridge has acquired the surface rights required for the infrastructure associated with mining
processing and storage of tailings and waste and was as the surface rights to all farms
surrounding the project. The Error: Reference source not found below lists the surface rights
holdings of Blue Ridge:
 Surface Rights
Title Deed Acreage
Property / Option Reg interest
Owner # (Ha)
Farm Blaaubank 168 (Portion 2) T55851/2002 528.4
Farm Blaaubank 168 (Portion 10 & 11) Braggite T110313/2002 617.8
Farm Haakdoorndraai 169JS (5 r/e 27 r/e 35) Braggite T110313/2002 221.3
Farm Blaaubank 168 (r/e farm, r/e 7) Braggite T95748/2002 769.2
Farm Blaaubank 168 (Portion 14) Braggite T95046/2002 173.0
Farm Blaaubank 168* (Portion 5) Braggite 492.7
Farm Blaaubank 168* (Portion 3) E Webb 606.4
Farm Blaaubank 168* (Portion 8) W Fourie Sale 415.4
Farm Blaaubank 168* (Portion 15) W Fourie agreement 513.5
Farm Haakdoringdraai* (Portion 7.28) E Webb signed on 31 613.9
Farm Blaaubank 168* (Portion 6) E Webb April 2005 611.7
Farm Blaaubank 168* (Portion 9) S du Toit 355.4
Farm Blaaubank 168* (Portion 16) S du Toit 260.4

3.0 MINERAL RESOURCE

3.1 ORIGINAL RESOURCE ESTIMATE

Geological exploration commenced in 2001. The basic framework of geological mapping was
completed followed by the drilling of 14 holes which were completed by early December 2001.
The exploration continued through 2002, with a further 65 holes drilled, extending the dip limits
of the UG2 to beyond 1,000 metres and confirming the outcrop along 3.6 kilometres of strike.
Considerable support was given by a trenching exercise in conjunction with an airborne
geophysical survey to produce a detailed structural map of the project area.

Additional mineral rights on Portion 15 of Blaauwbank were acquired in 2003. Drilling of

Portion 15 commenced in April 2003, and finished in September 2003.

In arriving at the audited mineral resource classification shown below in Table below 92
boreholes with 155 deflections were drilled, totalling 32,604 metres and 4,966 samples were
analysed. The mineral resource was presented using the terminology, definitions and guidelines
of the JORC Code.
 Production
The mine development is based on the central, north and truck ramp shafts. During 2008 work
focused on opening up production levels and faces in readiness for mining to begin in earnest.
The plan was to mine only the higher grade portion of the reef, using a method called "Efficient
Cut".
Before the plant was commissioned, Ridge Mining stockpiled more than 200,000t of ore – about
two months’ worth of throughput for the plant in full production – allowing enough ore to be
processed through the concentrator plant while the underground workings continue the ramp-up
to full capacity.
Annually the mine was forecast to produce about 75,000oz of platinum, 35,000oz of palladium,
22,000oz of ruthenium, 13,000oz of rhodium, 2,500oz of iridium and 1,500oz of gold over its
initial 18-year life.

Mineral Resource
Contained
Grade 3PGE + Au
Tonnage
Mineral Resource Class (millions) 3PGE + Au (million ounces)
Measured 26.1 3.3 2.77
Indicated 16.3 3.2 1.68
Inferred 8.7 3.2 0.89
Total 51.1 3.2 5.34

4.0 ORE RESERVE & MINE PLANNING

4.1 EFFICIENT MINING CUT

The grade distribution and hanging-wall conditions of the Blue Ridge UG2 have favourable
impacts on economics for the project. The lower metre of the 1.3 metre thick reef carries the
highest grade of up to 8 g/t 4PGE, with a peak about 20 cm up from the base, which enjoys a
sharp contact to the underlying pyroxenite. This part of the reef can be compared with the UG2
elsewhere in the Bushveld Complex. The upper 30 cm has weak grade (typically 1.8 g/t 4PGE),
 low density and a Pt:Pd ratio of about 1.6:1. Exceptionally for UG2, this upper part comprises
the “leader” layers, which were deposited as an integral part of the UG2, rather than occurring in
the hanging-wall where they form mechanically weak layers. The abundant silicate minerals that
weld the UG2 to the hanging wall imbue the reef with great strength, such that this section of
reef has a tensile strength 870 times greater than the load imposed on it by the upper 30 cm of
UG2 required to be upheld. These properties have enabled the concept of an efficient mining cut
to be developed, based on extraction of the lower metre of the UG2 layer, leaving the upper,
”leader” portion of the reef in situ as a part of the hanging-wall.

Resources
Total Measured, Indicated and Inferred resources are put at 81.85Mt, giving a contained 4PGE
figure of 8.38Moz at an average grade of 3.19g/t. Total proved and probable reserves are nearly
25.08Mt to give a contained 4PGE figure of nearly 2.42Moz at 3g/t.

TRIAL MINING

The Trial Mining exercise set out to establish the feasibility of selectively mining the A and B
units of the UG2 only and to leave the C unit in the hangingwall. The objectives of the trial
mining were to establish:

 The safe extraction of the A and B-units and support requirements to undercut the C-unit
 Labour efficiencies at stoping widths of ca 1.0m;
 The ability of mining personnel to identify the A, B and C units underground;
 The marker horizon to be used when mining the UG2
 The blast pattern required and resultant fragmentation of the UG2
 The structural complexity of the Blue Ridge UG2;
 The additional data points through a detailed underground sampling campaign.

The trial mining campaign was run over a period of 4 months. In this time, the access ramp was
advanced some 200m to a depth of 40 mBs and a total of 1,000 m2 of stoping was completed.
 During this period Blue Ridge was able to record zero fall of ground accidents. It was found that
the competency of the Norite/UG2 interface was sufficiently robust to support the mass of UG2
left in-situ between the permanent support units installed.

Once coached in the identification of the A, B and C-Units, the supervisors responsible for the
trial mining exercise were able to maintain stoping operations along the A and B units with only
11% of over-break into the C-unit.

One of the great successes of the trial mining exercise was the identification and exploitation of a
remarkably smooth footwall marker horizon that occurs at the base of the UG2. This marker
horizon occurs as a chloritised shear plane separating the UG2 from the pyroxenite footwall. The
distinct colour of the shear zone simplifies identification and the shear nature promotes a clean
breaking surface if blasted correctly. Providing the smooth footwall contact is not compromised
during stope blasting then footwall dilution is eliminated and cleaning of the stope face becomes
a far easier task.

4.2 MINING METHOD AND RESERVES

The UG2 on Blue Ridge dips east at an average of 17º, precluding the unfettered use of
mechanised mining equipment in the reef horizon. Further, the faulting that has been identified
in parts of the property was recognised as presenting an impediment to mechanised mining in
that dilution would probably be excessive, especially with long-hole drilling. It was therefore
decided that a hybrid mining method would be most appropriate. Accordingly, the declines, sub-
reef haulages and reef drives will be excavated by mechanised means. The reef will be won with
conventional methods.

The method proposed is to access the UG2 from sub-reef haulages, develop raises along the UG2
and align the stoping panels on dip. This system is sufficiently flexible to allow for the
separation of reef and waste, and through the dip alignment of the stope panels to minimise
dilution of stoping ore from the faulting recognised across the property.

The most efficient mining cut in terms of grade of material mined consists of the A & B Units.
The mining reserve was calculated from resource figures given by the geological model down to
a depth of 800 mBs. This depth was selected as the cut-off for reserve purposes as it presents the
limits to which one can mine in the eastern Bushveld without having to install significant
refrigeration plants.

The following dilution was taken into account.

Planned dilution – 10 cm of dilution planned in the hangingwall due to imperfect extraction. It

should be noted that this so-called dilution is from the C-Unit of the UG2 and runs at a grade of
1.8 g/t 3PGE + Au.

Unplanned dilution – 5cm of dilution planned in both the hangingwall and footwall due to
geological factors. The hangingwall dilution runs at a grade of 1.8 g/t 3PGE + Au whilst the
footwall runs at 0.3 g/t 3PGE + Au.

Development dilution and cross tramming – an allowance has been made for some 1.2 Mt of ore
contaminated with waste from raise and reef drive development to be fed into the mills over the
life of mine. Further, it has been assumed that 0.2 Mt of waste material will be cross trammed to
ore passes due to geological discontinuities in the raises being developed.

Production
The mine development is based on the central, north and truck ramp shafts. During 2008 work
focused on opening up production levels and faces in readiness for mining to begin in earnest.
The plan was to mine only the higher grade portion of the reef, using a method called "Efficient
Cut".
Before the plant was commissioned, Ridge Mining stockpiled more than 200,000t of ore – about
two months’ worth of throughput for the plant in full production – allowing enough ore to be
processed through the concentrator plant while the underground workings continue the ramp-up
to full capacity.
Figure Ore REServe & Mine Planning.3 – Schematic showing planned mining width,
planned dilution and unplanned dilution

Unplanned h/w
dilution

Planned h/w
dilution

Planned
Mining
width (A +
B Unit)

Unplanned f/w
dilution

The ore reserves are categorised in accordance with the terminology and guidelines of the JORC
Code. In the conversion from mineral resources into ore reserves the mineral resource estimate
was modified to account for hanging wall and footwall dilution, pillar losses and geological
losses to derive the Proved and Probable Ore Reserve estimate for Blue Ridge.

The Ore Reserve determination and applied to mine planning is summarised in the table below:

Ore Reserve Estimate (October 2003)

Classification Mt 4E (g/t) Contained
4E (Moz)

Proved Ore Reserve 14.8 3.3 1.55

Probable Ore Reserve 6.9 3.2 0.72
Total Proved and Probable Ore Reserve 21.7 3.3 2.27
 In order to achieve the required mill throughput tonnage of 120,000 tpm, a mining method has
been developed that achieves rapid tonnage build up in the first two years, and is sustained at full
capacity for approximately 18 years. The northern portion of Blue Ridge is geologically less
complex than the southern section (closer to the Steelpoort fault) and the emphasis on early
tonnage is placed on the northern area. An access ramp for trucks and LHD’s is developed on an
apparent dip of 8 degrees, and a conveyor decline developed on apparent dip of 12.5 degrees are
sited in the northern portion of the property and supply the bulk of the early ore. All access
points are developed in the footwall of the UG2.

5.0 INFRASTRUCTURE, UTILITIES AND SITE SERVICES

The mine, process plant and tailings dam facilities all require access roads, power supply,
fencing, clean stormwater cut-off, dirty stormwater collection & management, water reticulation,
lighting, and buildings of some description in order to function effectively.

5.1 WATER PARAMETERS / RETICULATION AND SOURCES

There is no commercial water source available in the area and all infrastructures required for
water supply was constructed as part of the project scope.

There is ground water on the site and water is provided from boreholes for make-up and potable
use. These boreholes are situated at three aquifer sites to the north-east and east of the tailings
dam and another west of the plant area.

Water comes from a combination of boreholes and the nearby Loskop Dam.

5.2 POWER

The electrical power demands of the mining and processing facilities have been estimated as
follows:

 Annualised average demand: 24.5 MW

 Maximum demand: 28.8 MW

 All power supply requirements for the project are provided by ESKOM.

ESKOM supply power to the project from the Mapoch Substation, joining the Mapoch /
Wolwekraal 132kV line and refurbishing about 18km of the existing line and feeding via 132kV
overhead power lines to an ESKOM yard at the mine. Ridge has erected a transformer sub-
station from where power is supplied to the plant, mine and tailings at 11kV, thus eliminating the
need for any further high voltage transformation. For electrical power, Ridge Mining signed up
with state utility Eskom before the moratorium on new supply contracts. The first power line,
which supplies about 70% of the mine’s requirements of 17MVA at full production, was installed
in November 2008, with the rest installed in 2009. To cater for any shortfall in the interim and
for any unforeseen outages, however, there are back-up diesel generators that can provide all the
mine’s power, albeit at higher cost.

The project did construct power lines from the plant site to the portals; return water dam;
explosives magazine and the aquifer borehole well field sites.

Processing
The ore is processed using crushing, milling and flotation, then milling and flotation again to
produce a concentrate. The ore is fed through a primary ball mill and into primary roughers and
cleaners, from where some of the feed goes to a care thickener and the rest to a secondary ball
mill and roughers and cleaners, then on to tails thickeners. The concentrator plant is next to the
entrance to the main decline shaft, which has a conveyor belt to bring the ore to the surface.
Processing testwork show recoveries into concentrate of 82%-86%.
The process plant, which is operated by Minopex, was built by Bateman Engineering; Murray &
Roberts Cementation are responsible for the underground mine development.

5.3 BUILDINGS

The following infrastructure buildings have been erected on the mine site:

o Steel structures, stores and workshops;

o Blower house;
 o Sample preparation & laboratory;
o Main store;
o Workshop;
o Reagent store;
o Brick buildings;
o Main administration office block;
o Engineering office block;
o Mining office block at Ridge Mining lay down area;
o Security gatehouse;
o Change house within the process plant;
o Change house at Ridge Mining lay down area;
o Electrical buildings – Plant control room (elevated in steelwork at flotation);
o Electrical buildings – Main HV substation;
o Electrical buildings – Substations & MCC’s.

5.4 LABORATORY

The mine has a dedicated assay laboratory capable of handling 200 samples per day. Precious
metals will be analysed on a 4E gravimetric, 4E individual or 6E individual basis using either Pb
or NiS collection fire assay. Finish for individual element assays will be by way of ICP. XRF
will be used to analyse major and trace elements. Sulphur will be analysed by LECO. Specialist
instruments will be used for other determinations.

Exploration samples (borehole cores) will be crushed, milled and assayed for 4E (individual), Ni,
Cu, Cr2O3 and S. Channel samples from working stopes will be prepared and assayed for 4E and
Cr2O3. Plant samples and concentrates will be assayed every shift for 4E, Ni, Cu, Cr 2O3 and S.
All weekly composite samples will be assayed for 6E (Pt, Pd, Rh, Au, Ir and Ru), Ni, Cu, Cr 2O3
and S. The filter feed will be sampled on a continuous basis over a specified period that makes
up a batch and the samples will be assayed for 6E, Ni, Cu, Cr 2O3 and S, as well as SiO2, Al2O3,
FeO, MgO and CaO. Monthly composites will be analysed for other trace elements including
As, Se, Bi and Te, as well as the full spectrum mentioned above.
 Master check assays will be performed through the Lakefield laboratory in Johannesburg.

5.5 ADMINISTRATION OFFICE

It is planned to convert the lodge facilities on site into administration offices incorporating the
necessary facilities for the full complement of senior and support staff.

5.6 STAFF ACCOMMODATION

It is not planned to house employees at the site. The Company will provide a bus service for
employees to the mine from the nearby towns.

6.0 MANNING

At full production the mine is expected have the following manning levels:

Area Number

Owner Management Team 18

Process plant 95
Engineering 14
Mining Contractor Staff 1,422
Total 1,549

The planned organisational structure of the mine is shown below in Figure Manning.4:
Organizational Structure
6.1 INDUSTRIAL RELATIONS

The mining industry in South Africa is strongly unionised. The main union being the National
Union of Mineworkers (NUM). The mining industry, through the Chamber of Mines, negotiates
on behalf of its members with the NUM on such issues as annual increases and conditions of
employment. Non-member mines are free to negotiate wage settlements on their own behalf
with the NUM.

6.2 BENEFITS OF THE PROJECT TO SOUTH AFRICA

The project will generate ZAR 5,1 billion in government taxes and royalties (as currently
estimated) over the life of the mine.

The project will directly employ some 1,500 people when at full production, most of whom will
be sourced from the surrounding area. The major economic impact locally will be to alleviate
poverty in an impoverished region.
7.0 SALES AND OFF-TAKE AGREEMENTS

An off-take agreement has been signed with Impala Refining Services Limited to acquire the
filter cake concentrate produced from Blue Ridge. In consideration for the signature of an off-
take agreement, Impala would maintain available capacity at its refining facilities for the life of
the Blue Ridge Mine.