at 30 June 2023
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 pillars:
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Operate our portfolio of assets safely, responsibly and efficiently |
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Allocate capital to value-creating investments |
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Focus on value-enhancing and integrated growth |
Manage life-of-mine Mineral Resources and Mineral Reserves for each operation efficiently, revising mine plans as required. |
Undertake exploration activities on-mine and apply stringent criteria in allocating capital for the work, to ensure value creation in the areas that we explore. |
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 report. |
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 JSE Limited (JSE) in May 2016. The 2023 ARM Mineral Resources and Mineral Reserves report is based on 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 quality control.
2 LoM: life-of-mine.
A set of guidelines has been formulated to assist Competent Persons in the estimation, classification and reporting of Mineral Resources and Mineral Reserves and are contained in the document entitled: "ARM Guidelines for Estimation, Classification, Reporting and Auditing of Mineral Resources and Mineral Reserves".
The document has been distributed to all the ARM Competent Persons and a copy is available at the ARM corporate offices.
As part of ARM's management process of Mineral Resources and Mineral Reserves, quarterly divisional forums are conducted with the following objectives:
The convention adopted in this report is that the Measured and Indicated Mineral Resources estimates are reported inclusive of that portion converted to Mineral Reserves. Inferred Mineral Resources have not been included in feasibility studies or life-of-mine plans. Mineral Resources and Mineral Reserves estimates are quoted as at 30 June 2023 unless stated otherwise.
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 and Mineral Reserves are tonnages falling within an economic pit-shell. Surface Mineral Resources and Mineral Reserves consist of stockpiles already mined. All Mineral Reserves are quoted at the grade fed to the plant.
The classification into Measured, Indicated and Inferred Mineral Resources is done by consideration of geostatistical parameters, spacing of boreholes, geological structures and continuity of the mineralisation. 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. No external audits were performed during this reporting cycle.
The Mineral Resources and Mineral Reserves are reported on a 100% basis and the attributable interest is noted in the footnotes of the tabulations. Rounding of figures may result in minor computational discrepancies on the Mineral Resources and Mineral Reserves tabulations.
The lead Competent Person with overall responsibility for the compilation of the 2023 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 an 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 companies, including Impala Platinum and Anglo American, as well as consulting companies such as 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 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 22 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 or its subsidiaries and/or joint-venture (JV) partners:
| ARM corporate office | R Jooste, M Mabuza, V Moyo |
| PGM (Two Rivers Mine) | C Henderson, JZ Khumalo, JA Coetzee, TJ Horak |
| PGM (Modikwa Mine) | M Setuke (Anglo American plc), AM Lesufi |
| PGM (Bokoni Mine) | K Masikhwa, R Jooste |
| Nickel (Nkomati Mine) | R Jooste |
| Manganese (Black Rock Mine) | 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
10 October 2023