Northam is an independent, mid-tier, integrated PGMs
producer. As such, it has total control over the entire
beneficiation stream of its metals to market. Northam has
a combined resource base of 195.8Moz (13.4Moz in the
reserve category), with a mining life of more than 50 years.
During the year, the company produced 290 675oz of
PGMs and spent R1.8 billion on capital projects.
Northam’s core business is conducted at the wholly-owned,
steady-state Zondereinde platinum mine near the town of
Thabazimbi in the Limpopo Province, and the recently
commissioned and ramping up Booysendal mine near
Mashishing in Mpumalanga Province.
During the year Northam acquired an additional 10% equity stake
in Northam Chrome Producers Proprietary Limited (NCP). This brings
Northam’s holding in NCP to 80%. NCP produces chrome from
Zondereinde’s UG2 tailings.
The company is domiciled in South Africa and headquartered in Johannesburg. It is listed on the JSE, trading under the share code NHM, and the debt issuer code NHMI, and is a member of the JSE’s Socially Responsible Investment (SRI) Index. Northam also runs a sponsored level 1 American Depositary Receipt (ADR) facility. These shares trade with the ticker code NMPNY on the over-the-counter market in the United States.
At the close of F2013 Northam employed 11 081 people in total (F2012: 11 631) at its wholly-owned Zondereinde and Booysendal operations and in the corporate office.
At the end of June 2013, Northam had 382 561 000 shares in issue and a market capitalisation of R12.2 billion.
The majority of Northam’s shareholders (72%) reside in South Africa, followed by North America (18%), and the UK and Europe (6%).
Policies, practices and performance relating to sustainable development form an integral part of the management of the company. While overall responsibility for sustainability lies with the board, specific oversight of various areas of sustainability issues have been delegated to the audit and risk committee, the health, safety and environmental committee and the social, ethics and human resources committee.
These committees function in accordance with established terms of reference approved by the board and material matters, particularly issues related to safety, are escalated to board level for consideration. Transformation and compliance with the Mineral and Petroleum Resources Development Act (MPRDA) and the Mining Charter are considered by the board and are a standard agenda item.
The audit and risk committee, which is chaired by lead independent director, Mr Alwyn Martin, comprises four independent non-executive directors. The health, safety and environmental committee, under the chairmanship of Mr Ralph Havenstein, comprises three independent non-executive directors, and the social, ethics and human resources committee, chaired by Ms Emily Kgosi, comprises four independent non-executive directors.
Northam wholly owns and operates the established Zondereinde platinum mine and metallurgical complex on the northern end of the western limb of the South African Bushveld Complex, and the Booysendal PGM mine near the town of Mashishing, Mpumalanga, on the eastern limb. Booysendal was commissioned in the second half of the year under review.
At steady state, Booysendal is expected to produce approximately 160 000oz. Northam owns 70% of NCP which produces chrome from Zondereinde’s UG2 tailings.
Following the acquisition by Northam of Mvelaphanda Resources Proprietary Limited in June 2011, Northam owns a 50% interest in the Dwaalkop PGM joint venture, a 51% initial participatory interest in the Kokerboom joint venture exploration project and a 20.3% interest in listed diamond miner, Trans Hex Group Limited (Trans Hex).
In addition, the company holds a 7.5% interest in the Pandora joint venture, a PGM mining operation at the lower end of the western limb of the Bushveld Complex, in partnership with Anglo American Platinum Limited (Amplats), the Bapo Ba Mogale community and Lonmin plc (Lonmin).