Update on Northam’s Zondereinde smelter

Further to the company’s announcement on 16 May 2013 with regard to the reduction of energy intensity at the Zondereinde mine smelter, a series of ultrasonic tests and temperature readings have demonstrated erosion of the refractory bricks comprising the walls of the smelter in proximity to the slag interface. This has necessitated a rebuild of the smelter.

Further pyrometallurgical and chemical analyses will be carried out to ascertain the cause of the erosion.

The Zondereinde mine and concentrators continue to operate normally, while the concentrate will be treated on a toll basis at other facilities.

The duration and cost of the rebuild will be determined in due course as further information becomes available.

Johannesburg
23 May 2013

Issued by
Russell & Associates
Johannesburg
Tel +27 11 880 3924