Work Stoppage at Implats - Update and Financial Im28 Mar 2003
Impala Platinum Holdings Limited                                                
(Incorporated in the Republic of South Africa)                                  
(Registration No. 1957/001979/06)                                               
JSE Share code: IMP                                                             
LSE: Impla                                                                      
ADRS: Impuy                                                                     
ISIN: ZAE 000003554                                                             
Work Stoppage at Implats - Update and Financial Implications                    
Good progress has been made with discussions with employee representatives at   
Impala Platinum where about 18,000 of the company"s 28,000 employees at         
operations on the Impala Lease Area have been engaged in an unprotected and     
illegal work stoppage.                                                          
An agreement was signed with employee representatives on Thursday night (27     
March 2003), in terms of which employee representatives would urge all employees
to return to work with immediate effect. Because large numbers of employees have
left the property in advance of the weekend, it is likely that the return will  
be effective from the night shift on 30 March.                                  
Management has in return agreed:                                                
To discuss issues of concern relating to the Provident Fund                     
Not to embark on any disciplinary action as a result of the work stoppage; and  
To return to the original funeral benefits scheme.                              
This follows ongoing discussions with the National Union of Mineworkers (NUM)   
and other employee representatives over the past few days.                      
The company views this outcome as a win-win situation. The company has avoided  
disruption to the operation through mass dismissal and will be able to re-build 
its relationship with employees and employee representatives in a constructive  
Efforts will be made to make up some of the production that has been lost.      
The work stoppage began when employees on the northern shafts (representing     
about 45% of production) did not proceed on the night shift on 13 March. The    
work stoppage continued on 14, 15 and 17 March. The southern shafts             
(representing about 55% of production) joined the work stoppage on 18 March.    
The company obtained a Labour Court interdict on Thursday 20 March for employees
to return to work. Employee representatives had until 27 March to respond to the
interdict. The interdict was unopposed and, consequently, a court order was     
issued in line with the interdict on 27 March.                                  
Initially the main issue appeared to be related to dissatisfaction with new     
funeral benefits that had been implemented by the Provident Fund with effect    
from 1 March 2003, after negotiation with and agreement by union                
representatives. Within a few days a demand emerged for the payout of funds by  
the Impala Workers Provident Fund to employees. This demand could not be acceded
to for legal and other reasons, without employees being dismissed or resigning  
from the company. Of great concern to the company was the misunderstanding of   
the issues amongst the workforce and a failure to understand the personal       
consequences of these actions. The average length of service of Impala employees
is in the region of ten years; the personal implications for employees of losing
benefits accrued in line with the length of service, as well as accrued         
Provident Fund benefits for employees and their families after employees have   
retired, is significant.                                                        
No dispute has ever been called and the work stoppage has remained unprotected  
and illegal in terms of the Labour Relations Act. Although the company has the  
right to dismiss employees in line with the company"s Disciplinary Code,        
supported by the Court Order, Impala has remained firm in the view that mass    
dismissal would be the remedy of last resort. This is in light of the company"s 
past good relations with employees.                                             
Financial implications for the company:                                         
The company will have lost 9.5 effective production days (as at the end of      
business today, 28 March 2003), equivalent to 35,150 oz of platinum production. 
This has resulted in a loss in revenue of approximately R265 million and a loss 
of about R139 million in attributable income (or net profit). Employees have    
lost about R24 million in income.                                               
It is unlikely that the majority of this production will be made up by the      
company"s year-end at 30 June 2003. The lower expected production for the year  
to June 2003 will have an impact on unit costs for the period, but it is        
expected that production and costs will return to normal levels within a short  
period of time.                                                                 
28 March, 2003                                                                  
Ilse Meiring                                                                    
082 448 2447                                                                    
Charmane Russell                                                                
082 372 5816                                                                    
Issued by: Sponsor                                                              
Deutsche Securities (SA) (Proprietary) Limited