IMPALA PLATINUM HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1957/001979/06)
JSE Share code: IMP
JSE Convertible Bond Stock Code: IMCB22
JSE Convertible Bond ISIN: ZAE000247458
ADR code: IMPUY
(“Implats” or “the Group”)
Implats refers all stakeholders to its SENS announcements of 24 March and 30 March 2020 noting
its acknowledgement and support for South African President Cyril Ramaphosa’s directive for a
21-day national lockdown to help slow the spread of the coronavirus in South Africa. The national
lockdown of all non-essential businesses and services was effective from midnight Thursday,
26 March 2020 and, following the recently announced two-week extension, will continue until
midnight on Thursday, 30 April 2020. In terms of an amendment to the regulations and these
directives, announced on 16 April 2020, mining operations may now conduct activities at a reduced
capacity of not more than 50% during the extended lockdown period, subject to the implementation
of specified precautionary measures aimed at protecting employees and limiting the spread of the
virus. Once the provisions of the lockdown have been lifted, operations may ramp up capacity further
as determined by the Minister for Mineral Resources and Energy.
Implats supports the lockdown measures taken by national governments to reduce the spread of the
coronavirus and welcomes the amended regulations, which will assist in securing critical mining
infrastructure and mitigate the severe impact of these measures on the lives and livelihoods of
employees, host communities and suppliers.
The Group’s internal planning to secure operational resilience during the coronavirus pandemic has
been ongoing since January 2020. Implats’ approach is based on the view that the virus will be a
feature for some time and operating in a ‘business as usual’ environment will not be possible in the
near term. Implats’ primary focus has therefore been on protecting the lives and livelihoods of its
stakeholders by taking steps to secure and sustain the financial viability of the Group and support
the national economies of the countries in which it operates.
Implats will establish a mechanism to enable members of its Board, the Group Executive Committee
and all Implats employees to donate up to one third of their salaries over the next three months. The
donations, including those received from our international operations, will, at the donor’s election,
either be paid into the Solidarity Fund - established to improve prevention and detection of COVID-
19 and cushion the impact of the pandemic on the country’s most vulnerable citizens - or be used to
provide care and support to our mine host communities. This mechanism heeds the call by the
President and the Cabinet, and their demonstrated leadership in action, in which they will donate
one third of their salary for three months into the Solidarity Fund.
All South African operations (Impala Rustenburg mining, processing and refining and Marula mining
and concentrating) were successful ramped down and placed on care and maintenance from
Thursday, 26 March 2020. The Group continued with limited operating activities at its critical
smelting and refining infrastructure and performed care and maintenance on underground
operations during the initial 21-day lockdown period. This allowed the Group to secure its furnaces
by treating some in-process inventory during this period. The Group’s ability to deliver precious
metals to customers has been constrained by the unavailability of secure air freight during the
lockdown, while base metal sales have been impeded by road and port restrictions.
Implats has implemented and enforced several measures to provide protection to employees who
are at work, rolling out a number of programmes which have been in development internally since
the threat of coronavirus emerged in January 2020. The lockdown period has been used to
significantly strengthen preparations to ready the business and safeguard employees. Stock levels
of medical protective equipment and PPE have been increased, regular large-scale disinfection of
workplaces is being performed and screening and testing procedures for all employees currently
reporting to work to perform essential services have been implemented. At this time, no COVID-19
cases have been diagnosed among employees or their dependants at the Group’s South African
and Zimbabwean operations.
A meaningful increase in medical care preparedness has also been undertaken through increasing
the capacity of internal medical facilities and through the coordinated collaboration with industry
peers, public/private partnerships and both local and regional medical institutions.
Management teams across all Group operations have introduced vital risk-based operating
procedures to further protect employees. These measures are specifically aimed at reducing the risk
of viral infections in high-risk work areas and to vulnerable employee categories. These steps
include improved hygiene, restrictions on the amount of work performed, social distancing while
performing work and while travelling to and from work, the provision of additional PPE and the
implementation of screening and testing procedures.
All essential services employees are currently screened using questionnaires, thermo-scanning of
skin temperature, and if necessary, core temperature screening, before entering their work areas.
These protocols will continue to ramp-up as employees return to work. Employees with abnormal
temperatures will be isolated at dedicated areas at the operations and then transported to designated
medical facilities for diagnosis and, if necessary, testing, quarantine and/or hospitalisation.
A key part of Implats’ return to work strategy has been to identify potentially vulnerable employees
and to institute additional specific precautionary measures to increase protection. This includes the
provision of vitamin and dietary supplements, flu vaccinations and critical medical screening. In
addition, employees have been provided with pre-packaged supplies of chronic medication for a
period of six months to ensure high-risk employees do not need to visit hospitals or clinics during
this time. Suitable temporary company accommodation is also being availed to employees who may
not be able to self-isolate or practise recommended social distancing measures when not at work.
Implats’ operational strategy is aimed at securing the integrity of key infrastructure and facilitating a
safe start-up once operations are cleared to resume. A systematic increase in labour attendance
was planned at Impala Rustenburg and Marula from 14 April 2020, in line with the permissions
received from the regulator. Following the easing of the lockdown provisions announced on
16 April 2020, the South African operations will advance measures to responsibly manage a gradual
return to work from Friday, 17 April 2020, taking the precautionary measures necessary to protect
employees. The management team continues to engage with the relevant authorities in this regard.
As previously indicated, management met with organised labour at both the national and branch
level before the lockdown began and agreed to continue paying full salaries to all employees during
the 21-day lockdown period. However, it was communicated to all stakeholders that the Group’s
financial position could not sustain this arrangement post the initial 21-day lockdown period and
therefore alternative arrangements would be implemented should the lockdown period continue
beyond the originally envisaged 21 days. The Group's standpoint is unchanged in this regard but
remain open to exploring alternative measures with its social partners to assist employees where
Impala Canada’s mining operations were classified as an essential business by the Ontario
government and operations continued at the Lac des Iles mine (LDI) during the declared state of
emergency. The provincial government has since extended the period to 12 May 2020. The
emergence of seven confirmed cases of COVID-19 at LDI over the past week, despite extensive
preventative measures that had been implemented to ensure employee safety, has required a ramp
down of operating activity. The operation was placed into temporary care and maintenance on
Monday, 13 April 2020. The majority of employees have left the site and are in self-quarantine until
27 April 2020. Management continues to collaborate with the health authorities and operations will
resume when it is safe to do so.
In accordance with the directive issued by the Government of Zimbabwe on Friday, 27 March 2020,
a 21-day lockdown commenced in Zimbabwe on Monday, 30 March 2020. Zimplats and Mimosa
applied for, and were granted, approval to continue with operations under agreed precautionary
measures. This has allowed Zimplats to maintain mining and processing operations, while at
Mimosa, limited mining operations to supplement available ore resources have allowed concentrate
production to continue during the lockdown.
Nico Muller, Implats CEO, said: “We are living in times of unprecedented uncertainty, which requires
new ways of thinking and innovative solutions to challenges we have not faced before. At Implats
we have taken several proactive steps to safeguard our business, with a key focus on securing and
ensuring the well-being of our employees.
“As management, we maintain regular and open communication with our key stakeholders including
our employees, organised labour and the national governments of Zimbabwe, South Africa and
Canada. To this end, we will continue to enhance our strategies for a successful resumption of
operating activities. This is necessary to secure the vital role our company plays in the livelihoods of
our employees, our host communities and the national economies in which we operate.
“Implats remains committed to engaging with all our stakeholders as we navigate through the
challenges presented by the evolving COVID-19 pandemic. We have been working tirelessly since
the emergence of the virus, to safeguard our employees and ensure the sustainability of our
company. We have significantly strengthened the preventative safety and health measures put in
place and are ready for a safe and orderly start up once we are given the go ahead to resume full-
scale production at our operations.”
Implats will provide additional updates as the situation develops. In addition, guidance on operations
will be provided in the scheduled third quarter FY2020 production update on 30 April 2020.
T: +27 (0) 11 731 9013/43
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E-mail : firstname.lastname@example.org
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17 April 2020
Sponsor to Implats
Nedbank Corporate and Investment Banking
Date: 17-04-2020 09:42:00
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