Capital expenditure and projects
Gross capital expenditure amounted to R948 million, R62 million lower than in 1997.

A total of R846 million was spent on the Moab Khotsong, WDL South Deepening, Elandsrand Deepening, Joel Taung North shaft and West Wits Carbon Technology Conversion projects. Other metallurgical and engineering projects absorbed a further R59 million.

At Moab Khotsong, the main shaft was commissioned in the second quarter of 1998. Phase 1 of the pumping facilities and settler dams was also commissioned during the year while the sinking of the main shaft extension to 2 900 metres was completed. The rock/ventilation sub-vertical shaft was sunk and lined to 3 600 metres, with the planned sinking completion date being 30 October 1999. Mid-shaft development was introduced during 1998 to facilitate the early opening up of mineral reserves. Six refrigeration plants were installed and commissioned and four additional plants are planned for 1999. Commissioning of the multi-rope electrically coupled Blair Winder will take place in April 1999, to take men and materials down to 3 100 metres.

Navachab, the company's other open-pit operation in Africa. A decision will be made soon about the viability of expanding the open pit to access the ore below.

At the Joel Taung North shaft project, final commissioning of the Taung South decline will occur in the fourth quarter of 1999. Significant redesign work has been completed on the Taung North shaft which will be commissioned in March 2001.

Sinking of the sub-ventilation shaft at the WDL South Deepening project was completed and commissioned in August 1998.

The shaft-deepening phase at the Elandsrand project has been completed. Tunnelling at 3 000 metres and 3 200 metres will continue during 1999.

Sadiola mine was brought into production at a cost of $280 million, some 9 per cent below budget. During 1998, Sadiola started a $1 million exploration programme within its 187-square-kilometre exploitation licence area which resulted in the delineation of 12 geochemical gold anomolies. Ground follow-up drilling has shown promising results. This programme will be continued during 1999, focusing on evaluation of identified targets with a budget of $2 million.

A $3 million drilling programme to test the nature and resource base of the sulphide ore extensions below the current pit was completed with positive results.

The 50 per cent AngloGold joint venture pre-feasibility study ($7 million budget) on the Yatela deposit, which lies 25 kilometres north of Sadiola, is progressing well. The project remains on schedule to meet its original completion date of mid-1999. Initial estimates show a resource of around 1.9 million ounces.

A decision will be made during March 1999 as to the viability of expanding the Navachab open pit in Namibia to access ore below the current pit plan. A positive decision will extend the life of the mine by some 12 years.