Overview of Anglo Platinum

Anglo Platinum Limited is a member of the Anglo American plc group. Its shares are listed on the Johannesburg Securities Exchange Limited, with a secondary listing on the London Stock Exchange and a listing of international depositary receipts for the company’s shares on the Brussels Bourse.

Anglo Platinum’s mining, smelting and refining operations are situated in the North West and Limpopo Provinces of South Africa. The company produces platinum group metals (PGMs) in quantities determined by their occurrence in the ore mined. The PGMs are platinum, palladium, rhodium, ruthenium, iridium and osmium. Nickel, copper, gold and small quantities of other base metals are by-products of PGM operations.

The main North West mining operations include Khomanani Mine, Siphumelele Mine, Thembelani Mine, Khuseleka Mine, Tumela Mine, Dishaba Mine and Union Section (85% owned). The main operating mines in Limpopo include Mogalakwena Section, Twickenham Mine and Lebowa Platinum Mines Limited (LPM).

 The company is also in joint ventures and associations with:

• ARM Mining Consortium Limited, a historically disadvantaged South African (HDSA) mining company comprising African Rainbow Minerals Platinum and 60 000 beneficiaries in local traditional communities, to operate the Modikwa Platinum Mine;
• The Royal Bafokeng Nation, an HDSA partner, in the combined Bafokeng-Rasimone Platinum Mine (BRPM) and Styldrift properties;
• The Bakgatla-Ba-Kgafela traditional community, which holds a 15% share in Union Section;
• Lonmin plc subsidiary Eastern Platinum Limited and HDSA partners, the Bapo Ba Mogale tribe and Mvelaphanda Resources Limited, over the Pandora PGM reserves;
• Xstrata South Africa (Pty) Limited to operate the Mototolo Mine; and
• Aquarius Platinum South Africa (Pty) Limited, covering the shallow reserves of its Kroondal and Marikana mines.

The company’s smelting and refining operations are wholly owned, treating concentrate and matte from its wholly owned operations and its joint ventures and subsidiaries.

The company announced its intention to conclude two major black economic empowerment (BEE) transactions with two existing empowerment partners, Mvelaphanda Resources Limited and Anooraq Resources Corporation. The deals, when successfully concluded, will create two major, independent HDSA producers who will manage and control the LPM, Ga-Phasha, Booysendal and Northam PGM assets.

In Zimbabwe, the company is developing the Unki Platinum Mine and in Canada, Russia, Brazil and China it is involved in exploration. Anglo Platinum has a representative office in Beijing.

Anglo platinum

Objective of the Fund

Anglo Platinum is the world's leading primary producer of platinum and accounts for about 37% of newly mined production globally. It also produces other platinum group metals (PGMs) including palladium, rhodium, ruthenium, iridium and osmium. Nickel, copper, other base metals and gold are by-products.

Some 61% of the world's platinum is used in autocatalysts, designed to reduce noxious emissions from vehicles. The remainder of the world’s platinum is used in industrial applications, jewellery and Exchange Traded Funds (where the physical metal is held).

Anglo Platinum is firmly committed to the development of PGM markets and, in cooperation with Johnson Matthey and others, researches and promotes new products using PGMs. New technologies and uses for PGM group metals are often developed but not always commercialised.

The PGM Development Fund (the “Fund”) is an initiative of Anglo Platinum to increase the use and application of PGM group metals in the global environment by investing in entities that either support PGM product development or use PGM technology in their products or processes.

The Fund will provide capital for further PGM market development and beneficiation by focusing on partnering innovators / entrepreneurs in PGM technologies at various stages of development.

The Fund will contribute capital and in some cases access to proven technologies in return for an equity participation in a venture principally in South Africa. The entrepreneur will be required to contribute leadership (to build and lead a motivated management team), operational skills (technical, manufacturing, marketing and distribution, etc.) and a well thought out business plan. Douglas Investments has been appointed by the Fund to manage the assessment of opportunities, deployment of capital and on-going management of the investments made.

The Fund will seek to generate market-related risk-adjusted returns as well as value beyond financial returns in the long-term local development of PGM technologies.

Overview of Douglas Investments

Douglas Investments manages a “hybrid” equity fund called Conexus, which is an open ended investment vehicle with a focus on generating long term capital growth using both the quoted and unquoted (private equity) investment universe principally in South Africa. Douglas Investments manages the entire investment process for Conexus from stimulation of deal flow, assessment of opportunities (start up’s, early stage, etc.), assessment of entrepenuers, deployment of capital and on-going management of investments made.

Clive Douglas and Richard Willis are executive Directors and shareholders of Douglas Investments with over 30 years of combined experience in the investment industry. They believe in an investment strategy that is founded on long term equity investment hypotheses, in both quoted and unquoted investments, together with the benefit of international diversification. The basic objective is to extract returns commensurate with the fundamentals of active capital investment.

Douglas Investments provides structure, expertise, independence and professional investment management to the Fund by fulfilling the following roles:

• Ensure objectivity based on commercial potential of the investments in line with general business principles.
• Manage the funds as a portfolio allowing a broad initiative across the downstream PGM industry.
• Separate the fund management and shareholder functions for the underlying investments from Anglo Platinum and its management within the defined scope and guidelines set, to minimize distraction and conflicts of interest and to introduce the focus of an aligned and dedicated professional private equity manager.
• Foster professional advice in the fund structure, potentially allowing other appropriate and interested investors to participate alongside Anglo Platinum in the Fund.

Fund structure

The Fund is a “vesting trust” which facilitates the partnership of Anglo Platinum and its potential co-investors with entrepreneurs who have developed innovative ideas using PGM technologies.

Such investments are made by the Fund based on the investment advice and management of Douglas Investments, supervised by the Fund’s Advisory Board appointed by Investors. The investments are held by the Trust as shareholder and capital partner with the shareholder benefits and risks vested in the Fund investors (initially Anglo Platinum) through a process of unitisation.
 

Investment strategy

The investment objective of the Fund is to generate long term capital appreciation primarily through privately negotiated equity and equity related investments in portfolio companies which use PGM’s or associated minerals in their processes and or products.

The Fund intends to initially build a diversified portfolio of 3-5 investments, which are expected to range from R 10,000,000.00 (ten million Rand) to R 30,000,000.00 (thirty million Rand) (with the possibility of larger investments). The Fund may invest in start-up or venture capital, growth capital for early commercialisation opportunities (i.e. technological, operating processes, etc.) or a combination of the foregoing. The Fund will seek to establish substantial equity positions, which may include control or minority percentage with appropriate protection in the form of a shareholders agreement.

The Fund will exert significant influence over its investment portfolio generally by strategic engagement with management and supported by shareholder agreements and board representation. It expects to hold its initial portfolio of investments for between 5 and 10 years.

Media & Communication

	Market Development and Beneficiation - 341kb pdf
	Launch of The PGM Development Fund - 360kb pdf
	Anglo kicks off beneficiation plan - 80kb pdf
	Angloplat unveils R100m PGM fund as part of beneficiation strategy - 79kb pdf

Beneficiation

Anglo Platinum is committed to beneficiation in the context of its market development strategy, aligning its value-addition initiatives to maximise the sustainability of programmes that increase the uses and values of the platinum group metals (PGMs).

The scope of this broad strategy includes additional initiatives that potentially highlight more opportunities for the local development of PGM related businesses across the spectrum of the market development scope.

Anglo Platinum participates in beneficiation across the following areas:

Research and Development (R&D) is supported by investing in human capital by helping local universities to build capacity, by funding students, and investing in PGM fundamental research on new applications.

Technology Transfer is facilitated through engaging with key fabricators and profiling beneficiation through demonstration projects that entail new products and new technology.

Commercialisation of downstream activities is facilitated through the provision of funding via a PGM development fund and a metal financing scheme thereby enabling product and business development.

Commercialisation in the jewellery industry where support and funding is provided for World of Platinum Marketing (a marketing company developed in collaboration with the North West provincial government marketing a branded range of jewellery called DJADJI PLATINUM through 15 retail stores nationally) and Plataurex Manufacturing (a business in Polokwane Limpopo focused on the low-cost production of dental alloys and wedding bands for the local and export markets).

Activities include

• development work in creating new applications
  Anglo Platinum, together with international fabricator partners, continually supports research (conducted in collaboration with local research institutions and universities) into other applications for PGMs to ensure continued market demand.
• partnership with the department of science and technology
  Anglo Platinum, Johnson Matthey and the Department of Science and Technology, have engaged to form a tripartite development programme to develop commercial applications for PGM products locally. A three phase programme focusing on the fuel-cell industry will be rolled out in the next few years, including research into and the development of reforming and system integration technologies.
• piloting a fuel cell in South Africa
  Anglo Platinum, in partnership with Anglo Coal, is piloting a stationary fuel cell on the Anglo Coal exploration site near Lephalale (Limpopo province). The coal bed methane gas drives the fuel cell that generates electricity, which once operational will generate 200 KW of energy and be connected to the national grid. The project has provided valuable insights into stationary fuel cells on a coal bed methane fuel source and its applications within the African environment and will provide learning experiences for institutions and students for the further development of this technology.
• development of jewellery
  Anglo Platinum supports the local jewellery design and manufacturing industry to enhance platinum market presence and to enable and encourage greater opportunities for domestic jewellers to compete in local and international markets.
• Training and marketing
  Assisting the jewellery industry in building advanced technical and design capacity, retail training and point-of-sale materials; sponsoring the annual PlatAfrica Design Competition, supporting six training institutions and six bursary students, and providing the industry with access to Platinum Guild International market intelligence regarding the jewellery industry, including the sharing of training material, trends, publications, etc.
• Metal financing scheme
  Anglo Platinum implemented a platinum metal financing scheme in 2006 to provide manufacturers with various options of managing price fluctuations with extended payment terms. 2008 numbers reflect a 185% growth from 2007 figures and the number of consignment sales customers has steadily increased over the last two years, reflecting value offered by the scheme.

Investment portfolio

The investment portfolio consists of:

Clean Tech Investment Opportunities (Pty) Ltd
Clean Tech is a special purpose vehicle that holds an investment in Altergy Systems’ Preferred Stock. Altergy Systems® is the global leader in the design, manufacture, sales, marketing and deployment of fuel cell power systems. Altergy's Freedom Power™ products are rugged, fully integrated, modular, scalable and highly-efficient fuel cell systems that generate power at the point-of-use making low cost, distributed power generation a reality and provide the solution to the serious global shortage of premium power and the growing demand for low cost, high quality power. Altergy’s unique design allows fuel cells to be manufactured in high volume at low cost, making widespread use feasible. These Freedom Power products provide freedom from the grid, freedom from foreign oil, freedom from traditional energy solutions, freedom from batteries and freedom from pollution and are “Changing the Way the World Gets Its Power.” For more information about Altergy Systems, visit www.altergy.com.

Clean Energy Investments (Pty) Ltd
Clean Energy is a newly incorporated company in South Africa with Anglo Platinum (through its beneficial holding in the PGM Development Fund), the Department of Science & Technology and Altergy Systems as its Founding Strategic shareholders. All three Founding Shareholders have the common goal of developing the fuel cell industry in South Africa and have partnered to make this a reality. Clean Energy will look to develop the fuel cell market in South Africa with its international technology partner, Altergy, by initially focussing on backup power for telecommunications. Altergy have suitable products that can be deployed immediately into the local market and also have a pipeline of suitable products that can be deployed into data centres, hospitals, rural areas, etc. Clean Energy will look to develop the market by partnering with suitable operational and investment partners with a similar philosophy. Clean Energy will look to ultimately assembly and manufacture fuel cells in South Africa in support of local beneficiation.

Government and the Private Sector to partner in the manufacture and distribution of fuel cells in South Africa - 20kb pdf

Ballard Power Systems
PGM entered into a loan agreement with Ballard to advance $4 mil in funding to support the continued commercial advancement of fuel cells for targeted market applications in South Africa. One of the key target market applications is the rural electrification of households as on-grid power is too costly to provide by the local utility Eskom. A home generator prototype is being developed using the Ballard fuel cell and a methanol based reformer. Once the development of the prototype is complete the parties will look to conduct further field trials with a view to commercialising the products for the African and worldwide markets.

The loan is a 5 year non-interest bearing loan repayable in Ballard common shares. PGM has the option of repayment on or before the maturity date.

Ballard provides clean energy fuel cell products enabling optimized power systems for a range of applications. Products deliver incomparable performance, durability and versatility. For more information on Ballard Power Systems, please visit their website: www.ballard.com

Please click on the following link to view the official press release: http://www.ballard.com/about-ballard/newsroom/news-releases/news03031301.aspx

Frequently asked questions

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Contact Details

Clive Douglas Investments (Pty) Ltd
Physical Address:		Postal Address:
Block 8		P O Box 67306
Bryanston Gate		Bryanston
Cnr Curzon & Main Rd		2021
Bryanston
2191
Tel:	+27 11 463 9102
Fax:	+27 11 706 0725
e-mail :
FSP No :	26359
Reg No :	2006/015070/07

Anglo Platinum Limited
Physical Address:		Postal Address:
55 Marshall Street		P O Box 62179
Johannesburg		Marshalltown
2001		2107
Tel:	+27 11 373 6137
Fax:	+27 11 373 5111
Contact Person :	Kleantha Pillay

Contact Details

Clive Douglas Investments (Pty) Ltd
Physical Address:		Postal Address:
Block 8		P O Box 67306
Bryanston Gate		Bryanston
Cnr Curzon & Main Rd		2021
Bryanston
2191
Tel:	+27 11 463 9102
Fax:	+27 11 706 0725
e-mail :
FSP No :	26359
Reg No :	2006/015070/07

Anglo Platinum Limited
Physical Address:		Postal Address:
55 Marshall Street		P O Box 62179
Johannesburg		Marshalltown
2001		2107
Tel:	+27 11 373 6137
Fax:	+27 11 373 5111
Contact People :	Kleantha Pillay

Disclaimer

Disclaimer & Forward Looking Statements
This website is controlled and operated from the offices of Douglas Investments (Pty) Limited (herein after referred to as Douglas Investments) in Johannesburg, South Africa. Douglas Investments makes no representation that the information contained in this website is appropriate for use in other locations. Nothing contained in this website constitutes an invitation or offer to any person to acquire or dispose of or otherwise deal in any investment or should be construed as advice or encouragement to any person to do any of the foregoing. Visitors to this website are advised to seek independent financial advice prior to making any investment decisions. While Douglas Investments takes reasonable care to ensure the accuracy of the information on this site, it shall not be held responsible for any losses or liabilities arising from the use of this information. This website contains links to other websites that are not controlled or maintained by Douglas Investments. Douglas Investments is not responsible for the content of those other websites, and the inclusion of a link to another website does not imply any endorsement or verification by Douglas Investments of the information contained at that website.

Disclaimer
The information contained in press releases, annual or interim reports, analyst presentations, and financial information should not be deemed accurate or current except as of the date of issue. Douglas Investments does not, does not intend to, and specifically disclaims any duty to, update or correct such information.

Neither an audit nor a review provides assurance on the maintenance and integrity of the website, including controls used to achieve this, and in particular whether any changes may have occurred to the financial information since first published. These matters are the responsibility of the directors but no control procedures can provide absolute assurance in this area.

Forward Looking Statements
Certain statements and information contained in this website are forward-looking statements based on The Fund’s future plans, objectives and goals. Although Douglas Investments believes that the expectations reflected in the forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Actual results could differ materially depending on risks generally inherent in the ownership and operations of mining properties and the production and sale of associated products.

The Promotion of Access to Information Act information (PAIA) is not a requirement.

What’s your big idea?

	What’s your big idea? - 1.49 mb pdf
	Entry Requirements - 213 kb pdf
	Innovation Advert - 337 kb pdf