De Beers Venetia Mine

Welcomes
Anglo American plc

SAFE, SIMPLE AND EFFECTIVE!

Venetia Mine Vision

Our Venetia an efficient and cost-effective

diamond operation responsibly securing our prosperity

SAFE, SIMPLE AND EFFECTIVE!

SAFE, SIMPLE AND EFFECTIVE!

Our Definition of Victory

Reputation

People

High levels of confidence instilled with our

shareholders and key stakeholders (employees
and external) by managing the mine within
acceptable and understandable levels of risk.

Competent, innovative and passionate

people and teams committed to
continuous improvement

MORALE

SAFETY

QUALITY

ZERO HARM to People,

Planet & Profit Always

Financial

COST

Sufficient cash generated to serve the FoC

commitments and fund the growth and future
expansion needs in such a way as not to
compromise any of the covenants.

Processes

DELIVERY

A culture of continuous business

improvement and standardization
entrenched in all processes within
the workplace to ensure the short
term viability and long term
sustainability

SAFE, SIMPLE AND EFFECTIVE!

SAFE, SIMPLE AND EFFECTIVE!

Resources

SAFE, SIMPLE AND EFFECTIVE!

Kimberlite Cluster

K03
K11
K02

K08
K05
K06
K01
K16

K12
K07

K04

K10

K18

SAFE, SIMPLE AND EFFECTIVE!

Kimberlite Cluster

K03
K11
K02

K08
K05
K06

K01

K04

K12
K07

K16
K10

K18

SAFE, SIMPLE AND EFFECTIVE!

Resource Models
K01 and K02 Modelled
to 1044m below surface

K03

K02

K01
K04

K03 modelled
to 600m below surface

Satellites modelled
to various depth

North
SAFE, SIMPLE AND EFFECTIVE!

Post SBP Resource Classification

K03

K02

K01

K04

Surface to B14
Surface to
B35

B36 to 49

Surface to
B13

B15 to B27

B28 to B58
Surface to
B63

Low Indicated
B59 to B72

High Inferred
Medium Inferred

B64 to B87

Very Low Inferred

2009 SBP Open Pit Mining Limit

Current Mining Surface

SAFE, SIMPLE AND EFFECTIVE!

Resources

8000000

Open Pit to end

of Cut 3

Open Pit
Cut 4

Underground
Phase 1

Underground
Phase 2

7000000

7000000

6000000

6000000
5000000

4000000
4000000
3000000

Carats

Tones

5000000

3000000
2000000
2000000

Tons 125.9
Carats 168.4

1000000

Tons 57.9
Carats 74.8

Tons 41.9
Carats 36.6

Tons 83.5
Carats 97.8

1000000

0
1 3

5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 77 79 81 83 85
K01 Indicated Tones

K01 Inferred Tones

K2 Indicated Tones

K2 Inferred Tons

K3 Inferred

Total Carats

SAFE, SIMPLE AND EFFECTIVE!

Current Production

SAFE, SIMPLE AND EFFECTIVE!

YTD (Mar)
7% up vs
budget

Total Waste Mined

Budget = 22.68mT

1,800

1872

2,000

1653

1,600

1339

Tons in Thousands

2,200

1656

2,400

1,400
1,200
1,000
800
600
400
200

YTD
2009Budget
Budget==4.54mT
1.5Mt

Dec-10

Nov-10

Oct-10

Sep-10

Aug-10

Jul-10

Jun-10

May-10

Apr-10

Mar-10

Feb-10

Jan-10

YTD Actual = 4.86mT

SAFE, SIMPLE AND EFFECTIVE!

YTD (Mar)
1% up vs
budget

Kimberlite Mined
Budget = 3.63mT

390

461

500

209

300

YTD
2009Budget
Budget==0.90mT
1.5Mt

Dec-10

Nov-10

Oct-10

Sep-10

Aug-10

Jul-10

Jun-10

May-10

Apr-10

Mar-10

Feb-10

100

64

200

Jan-10

Tons in Thousands

400

YTD Actual = 0.91mT

SAFE, SIMPLE AND EFFECTIVE!

YTD (Mar)
6% up vs
budget

Total Tons Mined

Budget = 26.30mT

1,780

1,717

1,800

1,200

YTD
2009Budget
Budget==5.44mT
1.5Mt

Dec-10

Nov-10

Oct-10

Sep-10

Aug-10

Jul-10

Jun-10

May-10

Apr-10

Mar-10

Feb-10

600

Jan-10

Tons in Thousands

2,400

1,865

2,262

3,000

YTD Actual = 5.78mT

SAFE, SIMPLE AND EFFECTIVE!

YTD (Mar)
5% down vs
budget

Kimberlite Treated
Budget = 4.00mT

390

450

312

318
215

270

180

YTD
2009Budget
Budget==0.97mT
1.5Mt

Dec-10

Nov-10

Oct-10

Sep-10

Aug-10

Jul-10

Jun-10

May-10

Apr-10

Mar-10

Feb-10

90

Jan-10

Tons in Thousands

360

YTD Actual = 0.92mT

SAFE, SIMPLE AND EFFECTIVE!

YTD (Mar)
0.1% up vs
budget

Carats Recovered
Budget = 3.97mCts

355

362

400

200

178

300

YTD
2009
Budget
Budget
= 0.96mCts
= 1.5Mt

Dec-10

Nov-10

Oct-10

Sep-10

Aug-10

Jul-10

Jun-10

May-10

Apr-10

Mar-10

Feb-10

100

Jan-10

Carats in Thousands

426

500

YTD Actual = 0.97mCts

SAFE, SIMPLE AND EFFECTIVE!

Looking Forward
Enhancement Opportunities

SAFE, SIMPLE AND EFFECTIVE!

Business Sustainability Programme Road Map

Ore Processing

Mine Planning Pit Optimisation

Plant Recovery factor study

(RATU Implementation)

Mining

2009 Base Line SBP

updated with current indices
Cut 4v27

30/3

Mining Equipment efficiencies

(shovels & trucks)

15/3

Pit Optimisation studies with reduced

ramp widths & increased slope angles
(high level Cut 3+ & Cut 4+ schedules)

Satellite Stockpile treatment

Ongoing

Bench Height implementation

study

30/3
20/3

Operational delay review

Integrate high level schedules

with K03

Red Area Tailings treatment

7/4

30/3
31/3
15/3

Preliminary SBP models

(Cut 3+, Cut 4+, Cut 4v27, U/G)

K03 treatment

9/4

Select optimal depletion strategy

Mix 03 treatment
13/4

Rehabilitation and Closure

Liability

Detailed scheduling
Detailed pit (incl. K03), stockpiles
and the Underground schedules

TBC

Truck Bowl Optimisation

19/3

Iterative
verification of
the interface
with the
Underground
team

Equipment Lifecycle review

Underground expansion
21/4

21/4

NOTE: Ore Processing opportunities divided

into:
Bankable
High Potential
Further Opportunities
All need earliest start dates

NOTE: Ore Extraction opportunities divided

into:
Bankable
High Potential
Further Opportunities

Finalise SBP & LOM Output

Group Requirements
Cash flow, EBITDA
Dividends, Debt Repayments

Match schedule
to Group
requirements
31/5

5/5

Draft Report (on mine)

17/5

Draft Report (off mine)

1830/6
FinalAND
Report (off
mine)
SAFE, SIMPLE
EFFECTIVE!

Ore Processing Business Sustainability

Program Implementation Plan
RATU Implementation

Risks
Mine test unit versus production
unit
MODRUP replacement
Upgrade obsolete technology
Improve plant efficiency

Wet Magrolls
Bulk reduction in magnetic material
Increase in throughput rates of satellite and other
magnetic material

Q2 2009 +

Mix 03

Red Area Tailings Dump

Composition

-3mm + 1
mm
recovery
tailings

Composition

Grade (@
2DS)

2133 cpht

Grade (@
2DS)

33 cpht

Total tons

114,064

Total tons

8,373,000

Total carats

2,433,000

Total carats

2,746,000

Risks
Grade variation
Accelerated timelines
Red Area Infrastructure/Services Supply
Contaminants (grease, steel etc.)
Long lead items

Risks

63% Waste,
27%
kimberlite

High yields, exceed recovery capacity

Excessively hard material
Grade variation

2013 +

Q4 2010 to Q1 2013

Ongoing
Review
Q1 2010 +

Q1 2011 +
Composition

Consist out
of K4, K5,
K6

Composition

MVKBR,
DVK, MVK

Grade (@
2DS)

20 cpht

Reserve
grade
(@2DS)

28 cpht

Total tons
(LOM)

7,534,481

Total tons

12,500,000

Total carats

1,536,000

Total carats

3,500,000

Risks
High yields, exceed recovery capacity
Grade variation
EMV fleet availability
Accelerate EMV capital spend

Satellite Stockpile

K03
SAFE, SIMPLE AND EFFECTIVE!

Mining Business Sustainability Program

Implementation Plan
Truck Efficiencies

Bench Heights

Shovel Efficiencies
2009 Year Performance

2010 SBP - Cut 4 v27 (Base Case)

2010 onwards BSP

Equipment Type
BLAST HOLE DRILL RIG 250mm
O&K RH340 SHOVELS
994 FRONT END LOADER
HAULTRUCK CAT 789
HAULTRUCK CAT 793
TRACK DOZER CAT D9R
TRACK DOZER CAT D10R
TYRE DOZER CAT 834
MOTOR GRADER CAT 16H
MOTOR GRADER CAT 24H
WATER TANKER 85 000lt
385 TYPE EXCAVATOR
375 TYPE EXCAVATOR
988 FEL
TYRE HANDLER
SERVICE TRUCKS
Dewatering Truck
Dewatering Excavator Unit
Hiab Trucks
WATER BOWSERS
FUEL BOWSER
LOW BED
SKID STEER
HIGHWALL SCALER
COMPACTOR
Spare RH340 Buckets

Average Load per Truck (2008 - 2010/02/10)

230

793 Target Payload = 225t

220

42.5%

210

Pit Layout

Budget Rate: RH340 = 1800tph, RH200 = 1400tph

793

2365 2323.4 2476

Q1 2008 +

10
02

09
12

09
11

09
10

09
09

09
08

09
07

10
01

20

20

20

20

Final High Wall

Position

Production Period

Production Period

789

1570 1517 1571

1314 1480

20

963 1061 1010 1077

09
06

1163

20

1391

09
05

10
01

10
02

20

09
11

09
12

09
10
20

20

20

20

09
09

09
08

09
07

20

20

20

09
03

09
05

09
06

09
04

20

20

20

09
02

09
01
20

20

20

3000
2500
2000
1500
1000
500
0

20

2170 2236

1510

817

09
04

1336 1297

Average Tons

1503
949

09
01

803

09
03

1214 1247
880

500

09
02

1274

1000

20

1940

2000
1500

20

201012

201011

201010

201009

201008

201007

201006

201005

201004

201003

201002

201001

200912

200911

200910

200909

200908

200907

200906

200905

200904

200903

200902

200901

200812

200811

200810

200809

200808

200807

200806

200805

200804

200803

200802

200801

150

20

Average Tons

2500

160

2009
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

2010

2011

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
5,270,519
0
0
0
2,400,000
0
0
0
6,449,246

0
0
0
0
0
0
45,515,268
0
0
0
0
0
5,270,519
0
0
0
0
0
0
0
0
0
0
0
0
0

2012

2013

0
80,000,000
0
0
0
0
37,929,390
17,054,778
4,848,308
12,374,533
11,417,365
0
0
0
0
0
0
0
2,000,000
0
0
0
0
0
0
0

0
80,000,000
0
0
0
0
7,585,878
5,684,926
0
0
0
0
0
0
0
2,479,678
0
0
0
1,800,000
1,800,000
0
0
0
0
0

2014
0
0
0
0
137,972,778
0
7,585,878
11,369,852
0
12,374,533
0
0
0
0
0
2,479,678
2,479,678
0
0
0
0
0
0
0
0
0

2015
0
80,000,000
0
18,377,196
91,981,852
5,600,000
0
5,684,926
0
0
0
0
0
5,374,260
0
0
0
5,270,519
0
0
0
0
374,134
2,400,000
0
0

2016
28,500,000
80,000,000
0
36,754,391
68,986,389
5,600,000
0
5,684,926
4,848,308
0
0
11,341,038
0
5,374,260
5,374,260
0
0
0
0
0
0
0
0
0
0
0

2017

2018

57,000,000
0
0
0
206,959,167
0
7,585,878
0
4,848,308
0
0
0
0
0
0
0
0
0
2,000,000
0
0
0
0
0
0
0

2019

2020

0
0
0
0
0
0
15,171,756
0
0
0
0
0
0
0
0
0
0
0
0
1,800,000
1,800,000
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2,479,678
2,479,678
0
0
0
0
0
0
0
0
0

0 14,119,765 50,785,787 165,624,374 99,350,482 174,262,397 215,062,887 252,463,572 278,393,353 18,771,756

4,959,356

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2,479,678
0
5,270,519
0
0
0
0
0
0
0
0

7,750,197 1,281,543,927

2010 SBP - Cut 3+ without K3

Equipment Type
BLAST HOLE DRILL RIG 250mm
O&K RH340 SHOVELS
994 FRONT END LOADER
HAULTRUCK CAT 789
HAULTRUCK CAT 793
TRACK DOZER CAT D9R
TRACK DOZER CAT D10R
TYRE DOZER CAT 834
MOTOR GRADER CAT 16H
MOTOR GRADER CAT 24H
WATER TANKER 85 000lt
385 TYPE EXCAVATOR
375 TYPE EXCAVATOR
988 FEL
TYRE HANDLER
SERVICE TRUCKS
Dewatering Truck
Dewatering Excavator Unit
Hiab Trucks
WATER BOWSERS
FUEL BOWSER
LOW BED
SKID STEER
HIGHWALL SCALER
COMPACTOR
Spare RH340 Buckets

Average Loading Rates per period - RH340

Average Loading Rates per period - RH200

20

170

Total

10 Q1 = 56%
New Rate: RH340 = 2400tph, RH200 = 1800tph

20

180

Significant Improvement in
December 2009 and January
2010 since Cut 3 and Cut 4
trims backlog has been mined
out

09 YR = 39%

789 Target Payload = 180t

20

10t (5%)
Improvement

190

20

200

EMV Life Cycle

Trim
Block

2nd Production
Block

1st Production
Block

2009
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

2010

2013

0
0
0
0
24,655,583
0
33,363,800
7,226,888
5,716,367
14,270,647
11,392,410
0
0
0
0
0
0
0
2,000,000
0
0
0
0
0
0
0

0
77,431,189
0
0
49,311,166
0
25,022,850
14,453,776
0
0
0
0
0
0
0
2,479,678
0
0
0
1,800,000
1,800,000
0
0
0
0
0

2014
0
0
0
0
24,655,583
0
0
7,226,888
0
14,270,647
0
0
0
0
0
2,479,678
2,479,678
5,270,519
0
0
0
0
0
0
0
0

2015
0
0
0
0
0
0
0
14,453,776
0
0
0
0
0
5,374,260
0
0
0
0
0
0
0
0
374,134
0
0
0

2016
0
0
0
0
73,966,749
5,600,000
0
0
5,716,367
0
0
5,670,519
0
0
5,374,260
0
0
0
2,000,000
0
0
0
0
0
0
0

2017

2018

2019

2020

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

Total

0 14,119,765 45,861,207 98,625,695 172,298,659 56,382,993 20,202,170 98,327,895 13,829,875

519,648,259

Variance in Capital FCT

4,924,580 66,998,679 -72,948,177 117,879,404 194,860,717 154,135,677 264,563,478 18,771,756

4,959,356

7,750,197

761,895,668

0
0
0
0
0
0
33,363,800
7,226,888
0
0
0
0
5,270,519
0
0
0
0
0
0
0
0
0
0
0
0
0

2012

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2,479,678
2,479,678
5,270,519
0
1,800,000
1,800,000
0
0
0
0
0

Q4 2010 +

Q4 2009 +

2011

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
5,270,519
0
0
0
2,400,000
0
0
0
6,449,246

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

2011 +
Ongoing
Review

Q2 2009 +

Q4 2010 to Q4 2013

Q1 2010 +

2009 Year Performance

2010 Budget Performance

2011 onwards BSP

22.31%

25.84%
34.73%

Attendance

793 U/L

Shovel W/T

51.11%

17.4%

13.7%
11.58%

10.00%

60.00%
2.23%

68.20%

11.58%
2.58%

Idle Time

Phase 1

Shovel Util

789 U/L

2.58%

Bench Heights

Phase 2

Truck W/T

Operational Delays

Drill Efficiencies

Bowl Optimisation
SAFE, SIMPLE AND EFFECTIVE!

Mining Planning Business Sustainability

Program Implementation Plan
Planning Road Map
Mine Planning Pit Optimisation

Ore Processing
Plant Recovery factor study
(RATU Implementation)

Mining

2009 Base Line SBP

updated with current indices
Cut 4v27

30/3

Net Effect
Whittle Shells

Increased Slope Angles

Geotech domains and slope changes

Mining Equipment efficiencies

(shovels & trucks)

Ultimate Pit (RG)

15/3

Satellite Stockpile treatment

Pit Optimisation studies with reduced

ramp widths & increased slope angles
(high level Cut 3+ & Cut 4+ schedules)

Red Area Tailings treatment

Integrate high level schedules

with K03

Ongoing

Bench Height implementation

study

K3

Cut 4+

30/3
20/3

7/4

Operational delay review

Previous North domain

boundary

30/3

Cut 3+

K2

31/3
15/3

Preliminary SBP models

(Cut 3+, Cut 4+, Cut 4v27, U/G)

K03 treatment

Truck Bowl Optimisation

19/3

9/4

Iterative
verification of
the interface
with the
Underground
team

Select optimal depletion strategy

Mix 03 treatment
13/4

Rehabilitation and Closure

Liability

Detailed scheduling
Detailed pit (incl. K03), stockpiles
and the Underground schedules

TBC

Equipment Lifecycle review

K1

21/4
Cut3+
(HLD)

V27
Dgn

Cut 4+
(HLD)

Cut 3+ &
Cut 4+ (Net)

Ore

37

39

55

92

Waste

271

364

561

751

Stripping Ratio

7.3

9.2

10.2

8.19?
8.2

Rev/Cost Ratio

27%

23%

16%

LOM @3.5Mt

11

12

16

27

LOM @ 4Mt

10

14

23

21/4

NOTE: Ore Processing opportunities divided

into:
Bankable
High Potential
Further Opportunities
All need earliest start dates

NOTE: Ore Extraction opportunities divided

into:
Bankable
High Potential
Further Opportunities

Finalise SBP & LOM Output

Group Requirements
Cash flow, EBITDA
Dividends, Debt Repayments

Match schedule
to Group
requirements

Increased North domain

boundary

31/5
5/5

Draft Report (on mine)

17/5

K4

Cut 3 (Design)

Underground expansion

Draft Report (off mine)

Final Report (off mine)

130/6

Q1 2010

C4 V27 (Design)

Plan View - Bench 10 (576 amsl)

Q2 2010
(study complete)

Q1 2010 Approval

Ongoing
Review
Q2 2010
(study complete)

Q1 2010 Approval

Q1 2011 +
Ultimate Pit (RG)
Mineral
Resource

0.5 x Tyre Dia

Angle of repose = 37 deg

F = 36.9m

Bottom
Bench

Tonnes
(Million)

Carats
Million

Cpht
(+2#)

37m

Intrinsic
Value
(Million
US$)

if berm is 1.8m

K3
K3

Cut 4+

A = 8.4m
Our berms are
1.80
metres high i.e
0m additional
for safety reasons

120m

K2

Skin Analysis

Version 27 Pit Design

$/crt (FSV)

79.48/CKW
2009

50

42.26

7.62

18

791.6

2005

13

12.98

2.61

20

245.5

104.57/CK&VK

K03
K02

Ca 104

K01
Cut 3+

K03 Whittle Pit optimisation results

120m

K03

0.0 m for pipes

LOM 10 years stand alone

0.0 m safety berm

2 m backbreak

K1

K1

K4

K02

B = 1.8m

Toe = 0m

Cut 3 (Design)

E = A x a = 29.3m

Cut3+
(HLD)

V27
Dgn

Cut 4+
(HLD)

Cut 3+ &
Cut 4+ (Net)

Ore

37

39

55

92

Waste

271

364

561

751

Stripping Ratio

7.3

9.2

10.2

8.19?
8.2

Rev/Cost Ratio

27%

23%

16%

LOM @3.5Mt

11

12

16

27

LOM @ 4Mt

10

14

23

C = 5.6m

Dual Haul Road Cross Section

Reduced Ramp Widths

C4 V27 (Design)

Plan View - Bench 10 (576 amsl)

Cut 3+ (tuck-in)
Whittle shells

Ore tons 12.5Mt

Carats 3.4M carats
Waste tons 15.9Mt
Stripping ratio 1.28
Reserve Grade 27cpht
Resource grade 18cpht

K01

K03 Mining

SAFE, SIMPLE AND EFFECTIVE!

Rehabilitation and Closure Liability

Management Project
Closure Cost Estimation
Premature and LoM

Rehab & Closure Scope

Dumps
FRD 2
P

d
in
W
g n
lin io
ai ect
v
r
re Di

Work Breakdown Structure (WBS)

SCOPE
Premature Closure Estimate
LOM Closure Estimate
per annum

K3
K2

INPUT
SHEETS

K4

K1

Explosives
Magazine

Primary
Crusher

MTP

e
s, S
tore

MV
s, E
vice

Grid reference

Roll-up of all sheets

P&Gs
Contingencies

PLANNING AND RECONCILITATION

WORKSHEET

Offices

Annual values:

Field
Air

Coarse
Tailings

SUMMARY SHEET

SURVEY
AND
RECONCILIATION

Category (Description of work)

Quantities
Master rates schedule
(Cost
(volumes and areas)
per unit measurement)

A: Premature closure (opening balance)

B: Liability accruals (additional disturbance)
C: Planned rehabilitation (liability reductions)
Annual updated liability = A + B - C

Access Control
& Change House

Y0

Y1

(A) Premature

(A) Premature Y0

+
Balance

Life of Mine (LoM)

Y2

Y3, Y4

Y End

(A) Premature Y1

(B) Liability
accrual Y1

(B) Liability
accrual Y2

(C) Rehabilitation Y1

(C) Rehabilitation Y2

Balance Y1

Balance Y2

LoM est.

Q4 2010 +
Ongoing
Review
Q2 2010

Q1 2011 +
Additional
operational
disturbance

Ongoing
rehabilitation

Liability

Working smart
Initial
operational
disturbance

Existing Premature
closure estimate in
this region

Initial
development of
infrastructure
and projectrelated
disturbance

Existing LoM estimate

in this region due to
incorporation of smart
WRD deposition in
2007 closure estimate.
This is, however, not
currently being
implemented

MINE CLOSURE

FRD 1

CESSATION OF MINING
OPERATIONS

Twin Shaft
Complex

Time
Initial
development of
infrastructure
and projectrelated
disturbance

Initial
operational
disturbance
with little
opportunity for
rehabilitation

Operation of
mine

Treatment of
stockpiles &
rehabilitation
effort using ex
mining
machinery

Rehabilitation
effort post mine
closure towards
obtaining
closure
certificate

Closure liability should NO rehabilitation effort be conducted prior to the cessation of mining operations
Closure liability should ongoing rehabilitation be conducted in line with current mine designs and dumping strategies
Closure liability should ongoing rehabilitation be conducted in addition to improved mine designs and deposition
strategies

Baseline Program

Life of Mine Closure

Liability & Provisioning

SAFE, SIMPLE AND EFFECTIVE!

Thank You

SAFE, SIMPLE AND EFFECTIVE!