Reducing our Carbon Footprint

1. Reducing our Carbon Footprint GHG Reduction and Thermal Energy Efficiency at AfriSam

2. Contents • Introduction to AfriSam • Drivers for Efficiency • Historic Initiatives • Recent Initiatives • The Trends • What next

3. Company Overview • The leading black-controlled building and construction materials group in southern Africa. • Operations in South Africa, Botswana, Lesotho, Swaziland and Tanzania. • Annual turnover of approximately R7 billion and employs more than 2000 employees. • South Africa’s largest producer of aggregate and the second largest producer of cement and readymix concrete. • The only fully vertically-integrated supplier of cement, aggregates and readymix concrete in Gauteng. • Facilities include: • 2 cement plants near Lichtenburg and Kimberley • 1 milling plant at Roodepoort • 2 blending plants at Brakpan and Swaziland • 1 GGBFS grinding plant at Vanderbijlpark • 41 readymix concrete plants across the region • 16 aggregate quarries throughout the country

4. Brand AfriSam Brand and Values ‘Afri’refers to our proud African heritage and the sub-Saharan African countries in which we operate. ‘Sam’comes from the word ‘samente’ or ‘disamente’, which means cement in six of South Africa’s official languages. Triple Bottom Line AfriSam has been in the business of mining and producing construction materials for the past 77 years. AfriSam believes that a company can only be sustainable in the long term if it actively manages, measures and optimises its financial, social and environmental performance on an ongoing basis and underpins this by a strong corporate governance platform. Values People Planet Performance Responsible approach to the community and Environment. To be the best at everything we do. Acting with integrity and respect.

5. The Driver for Efficiency • Cement manufacturing is energy intensive and results in substantial CO2 production thus AfriSam is committed to continually aim to reduce this impact • A worldwide move towards sustainable development • Alignment to company values • AfriSam historically been the industry leader in emission control and energy efficiency • SA is one of the world’s largest and fastest growing carbon emitters – committed to reduce GHG emissions by 34% below “business as usual” levels by 2020 • Financial benefit

6. Historic Initiatives • Project Green Cement – Blended /extended cement – 2000. R & D into activators • Process optimisation and equipment upgrades • Burner and fuel consumption optimisation • Electric motor audits – fit for purpose motors and energy efficient • Use of energy efficient mill technology VRM vs ball mill -24% more efficient- capital costs 20% more • Use of bucket elevators instead of air lifts

7. More Recent Initiatives CO2 footprint per product • External consultant – CEM certified developed the per product model • Based on WBCSD model and GHG Protocol • “Cradle to gate” approach incorporating scope 1,2,3 emissions. • First publicised the CO2 rating on AfriSam APC, HSC and RHC bags in September 2009 Eco Building cement 2010– most thermally efficient product in range - CO2 footprint 415kgCO2/ton – half that of RHC or an HSC

8. CO2 Rating Initiative 527g/kg APC 500 g/kg All Purpose Cement 527g/kg

9. Thermal Energy Efficiency Trends Improvement in specific thermal energy consumption from 1990 to 2012 – 40% Improvement in specific thermal energy efficiency from 2000 to 2012 – 37%

10. CO2 Emissions • Project Green Cement began in 2000 – baseline emissions where 815 kg CO2 per ton cement with Gross CO2 emissions per annum of 2.1mio. • In, 2012 emissions averaged at 542 kg CO2 per ton cement with Gross CO2 emissions per annum of 2.2mio. Between 1990 and 2012, AfriSam reduce specific CO2 emissions per ton of cement by more than 33% despite increasing cement production by in excess of 50% over the same period.

11. What next • Waste Heat Recovery - feasibility • Alternate Fuels and Resources