as at 30 June 2024
Extracting optimal value from the Mineral Resources and Mineral Reserves in our portfolio is fully aligned to ARM’s purpose of delivering competitive returns and creating sustainable value for all our shareholders through its strategic objectives:
Strategic objective
How we add value
Manage life-of-mine Mineral Resources and Mineral Reserves for each operation efficiently, revising mining business plans as required.
Undertake exploration activities on-mine to ensure value creation in areas that we explore. Optimally and efficiently use allocated capital to realise integrated strategic business value.
Maintaining the appropriate balance between Mineral Reserves depletion and growth to ensure a sustainable company.
ARM’s method of reporting Mineral Resources and Mineral Reserves complies with The South African Code for Reporting of Exploration Results, Mineral Resources and Mineral Reserves (the SAMREC Code – 2016 edition), The South African Code for Reporting of Mineral Asset Valuation (the SAMVAL Code – 2016 edition) and Section 12.13 of the JSE Listings Requirements.
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Historical ARM Mineral Resources and Mineral Reserves reports can be found at www.arm.co.za under investor relations, financial results, integrated reports. |
The SAMREC Code, 2016 edition sets out minimum standards, recommendations and guidelines for Public Reporting of Exploration Results, Mineral Resources and Mineral Reserves in South Africa. It was launched and adopted by the Johannesburg Stock Exchange (JSE) in May 2016. The 2024 ARM Mineral Resources and Mineral Reserves reporting adheres to the guidelines prescribed by the SAMREC Code, 2016 edition. The reporting of Mineral Resources and Mineral Reserves is done annually according to the following flow chart:
1 QAQC: Quality Assurance and Quality Control.
2 LoM: Life-of-mine.
The Mineral Resources and Mineral Reserves are reported as at 30 June 2024, unless otherwise stated. The reporting convention adopted in this report is that the Measured and Indicated Mineral Resources estimates are reported inclusive of the portion converted to Mineral Reserves. Inferred Mineral Resources have not been included in feasibility studies or LoM plans. Exploration activities at ARM are ongoing with a continued focus on on-mine exploration. Technical studies are managed through trial mining and new business development initiatives.
The ARM Mineral Resources and Mineral Reserves are reported based on the supporting principles denoted in the document “ARM Guidelines for Estimation, Classification, Reporting and Auditing of Mineral Resources and Mineral Reserves”. A copy of this document is available on the Mineral Resources Management (MRM) server and has been distributed to all Competent Persons (CPs).
Underground Mineral Resources are in-situ tonnages that have reasonable prospects for eventual economic extraction (RPEEE) at the postulated mining width, after deductions for geological losses. Underground Mineral Reserves reflect tonnages that will be mined and processed.
Open-pit Mineral Resources are quoted as in-situ tonnages that have RPEEE. Surface Mineral Resources includes stockpiles already mined but not yet processed. The classification of Measured, Indicated and Inferred Mineral Resources considers geostatistical parameters, spacing of boreholes, geological structures and continuity of the mineralisation.
The conversion of Mineral Resources to Mineral Reserves is a systematic process. Mineral Reserves estimates are derived through planning processes applied to the Measured and Indicated Mineral Resources only, which considers detailed modifying factors. Mineral Reserves are subdivided, in order of increasing confidence of modifying factors, into Probable and Proved Mineral Reserves. Mineral Reserves tonnages for both open-pit and underground sources are considered economically mineable. Mineral Reserves estimates reflect tonnages defined by a LoM plan that will be mined and processed. Stockpiles reported as Mineral Reserves are considered already mined and stored on surface. All Mineral Reserves are quoted at the grade fed to the plant.
As part of ARM’s management process of Mineral Resources and Mineral Reserves, quarterly divisional forums are conducted with the following objectives:
External consulting firms audit the Mineral Resources and Mineral Reserves of the ARM operations when substantial geological borehole data has been added to the previously established database or every three years, whichever comes first. Several technical external and internal audits were conducted in this reporting cycle. There were no findings relating to fatal flaws, material risks to the reporting for the Mineral Resources and Mineral Reserves estimates.
The board of directors is not aware of any legal proceedings or other material conditions that may impact on the company’s ability to continue its mining or exploration activities.
Mineral Resources and Mineral Reserves are reported on a 100% basis and the attributable interest is noted in the footnotes of the tabulations. Maps, plans and reports supporting Mineral Resources and Mineral Reserves are available for inspection at ARM’s registered office and at the relevant mines. ARM’s Prospecting and Mining Rights details are provided in this report for each operation (refer to the relevant sections of the operations). Rounding of figures may result in minor computational discrepancies in the Mineral Resources and Mineral Reserves tabulations and reconciliation graphs.
The lead Competent Person with overall responsibility for the compilation of the 2024 Mineral Resources and Mineral Reserves report is Ruwayne Jooste, an ARM employee. He confirms that the information in this report complies with the SAMREC Code, 2016 edition and that it may be published in the form and context in which it was intended.
Ruwayne Jooste graduated with a BSc (Hons) (Geology) and a MEng in mining engineering from the Randse Afrikaanse Universiteit and the University of the Witwatersrand, respectively. He later completed a citation in applied geostatistics from the University of Alberta. He has held key roles in mining and consulting companies, including Impala Platinum, Anglo American and the MSA Group, in various capacities as a geologist, Mineral Resource analyst, principal geostatistics and senior Mineral Resource consultant. In 2017, he joined ARM as Mineral Resources manager and was involved in the evaluation of various mineral deposits, due diligence reviews and annual Mineral Resource and Mineral Reserve reporting for the group. In 2023, he was appointed group Mineral Resources manager for ARM. He is registered with the South African Council for Natural Scientific Professions (SACNASP) as a professional natural scientist (PrSciNat) in the field of practice of geological science, registration number 400163/05. SACNASP is based in the Management Enterprise Building, Mark Shuttleworth Street, Innovation Hub, Pretoria, 0087, South Africa. He has a total of 23 years’ experience in various aspects of mining and exploration geology, database management and Mineral Resource estimation and as such is considered to be a Competent Person.
All Competent Persons at the ARM corporate office and the operations have sufficient relevant experience in the type of deposit and in the activity for which they have taken responsibility. The Competent Persons consent to the inclusion of the Exploration Results, Mineral Resources and Mineral Reserves information in this report, in the form and context in which it appears. Details of ARM’s Competent Persons are available from the company secretary on written request.
The following Competent Persons were involved in the estimation and/or compilation of Mineral Resources and Mineral Reserves. They are employed by ARM, its subsidiaries and/or joint-venture (JV) partners:
| ARM Corporate office | R Jooste, A Geldenhuys, V Moyo | |
|---|---|---|
| PGM (Two Rivers Mine) | C Henderson, JZ Khumalo, JA Coetzee, TJ Horak | |
| PGM (Modikwa Mine) | M Setuke (Anglo American plc), AM Lesufi, C Mampa | |
| PGM (Bokoni Mine) | K Masikhwa, Z Matsimbi, A Geldenhuys | |
| Nickel (Nkomati Mine) | R Jooste | |
| Manganese (Black Rock Mine) | L Ngalela, B Ruzive, M Papale, S Jenniker | |
| Iron ore (Beeshoek Mine) | AMJ Burger, R Jooste, L Kruger | |
| Iron ore (Khumani Mine) | IJM van Niekerk, B Muzima, B Nel | |
| Coal (Goedgevonden) | M Smith (Glencore head office) |
Ruwayne Jooste
PrSciNat
Group Mineral Resources manager
African Rainbow Minerals
24 Impala Road, Chislehurston, Sandton, South Africa
25 October 2024