The aim of this project is to unlock economic value in the DR/DRS (direct reduction/direct reduction sinter) market by increasing the capacity of the production plant and downstream product handling facilities in order to screen all (66% Fe) 25mm lump ore into DR (20mm) and DRS (27mm) niche products. It is envisaged to make an investment decision on this project in Q1 2010.

This project’s aim is to beneficiate the -1+0.2mm fraction of the Jig plant ROM feed currently being discarded. This fraction was previously deemed to be waste due to technical risks associated with the beneficiation and de-watering of the material. These technical risks have been mitigated. The project aims to produce 0.75Mtpa additional fines product, and has the potential to increase the jig plant product yield by about 3%.

The aim of the SEP2 project is to increase Sishen Mine’s production by approximately 10Mtpa, utilising the additional material available in the definition of the larger optimised pit shell, supplemented by the material that became available with the refinement of the Sishen product range. The increased mining activity required to mine the larger pit will in part be utilised by beneficiating the low Fe grade portion of the material resulting in some of the waste being reclassified as ore.

The 9Mtpa mine under development consists of a direct shipping ore configuration without beneficiation. An opportunity of introducing beneficiation, utilising the lower grade ore in the mine, is currently being studied. This opportunity could add an additional 3Mtpa of product, and will be pursued after ramp up phase of the current project.

Large volumes of banded iron formations (BIF) exist in the Thabazimbi mountain range. This ore body was previously mined by underground mining methods, to extract high grade haematite. In addition to the BIF, significant volumes of this high grade haematite, which could not be extracted by the underground mining methods previously, still remain in the mountain.

Phoenix aims to mine the BIF and haematite with open-pit mining methods and to beneficiate the material with a newly constructed plant. The BIF material will be liberated by crushing down to 5mm top size and beneficiating it through a jig plant.

It is envisaged that Phoenix will produce about 3.4Mtpa.

The new order prospecting rights were approved for Zandrivierspoort, some 30km north of Polokwane in the Limpopo Province in November 2006.

The Zandrivierspoort project aims to establish an open pit mining operation producing between 1 and 5Mtpa magnetite concentrate product (<70 microns) through a new processing plant and other related infrastructure facilities. The plant will incorporate a crushing and grinding section, a beneficiation plant, slimes and coarse tailings disposal sections and final product stockpiling and load-out facilities linked by rail to the railway line at Solomondale.

Sishen Mine currently produces approximately 3.5Mtpa (from dense medium separation and jig plants) of ultra fine material that is discarded to the tailings dam. Based on the initial test work results conducted during the project’s opportunity phase this material has a relatively high percentage of iron (54% Fe) that could be upgraded to produce a high grade concentrate with a minimum Fe grade of 64.5%. The concentrate can be used as an iron-making feedstock or blended with fine iron ore product.

It is envisaged to complete the concept study by H1 2010 and, dependant on the viability, progress the study into a pre-feasibility stage. The main deliverable of the project would be to establish a standalone concentrate production facility designed to process the ultra fine material profitably.

The timing of this portfolio of projects will be carefully assessed against prevailing market fundamentals, the viability of individual projects and rail and port expansions.