About this report

This Integrated Annual Report covers the strategy, review of performance against objectives and financial results of African Rainbow Minerals (ARM) for the financial year ended 30 June 2010 (F2010). The ARM Board (the Board) approved the financial and non-financial information contained in this report on 15 October 2010.

We have aimed to provide a balanced and complete assessment of ARM’s performance to enable all our stakeholders to properly assess our progress in the last year, in accordance with the relevant statutory frameworks. These include, but are not limited to, the Company’s Act and JSE Listings Requirements, as well as all legislation, regulations and codes of practice applicable to the South African mining sector and in the countries in which we operate.

The Group and operational commentary provided covers the management approaches and actions taken in the last year of ARM’s five-year strategic planning cycle, which ended in 2010, in relation to the macro-economic dynamics, key performance indicators, opportunities and risks for ARM as a whole and in each of our core businesses and joint ventures (including those in which we have a non-controlling interest and over which we do not exercise management control). It also includes management targets and priorities as the Group moves into the future. The Company structure provided in our corporate summary indicates ARM’s ownership in each of these businesses, thereby illustrating the scope of this report, and the significant entities with whom we partner in each case.

For easy reference and comparability, the structure of this year’s report follows that presented to our broad base of stake holders in our Annual Report last year. In line with the reporting recommen dations of the King Report on Governance for South Africa 2009 (King III), which comes into effect for JSE-listed companies for financial years ending after 1 March 2011, we will seek to become progressively more integrated in our approach going forward. In August 2010, ARM completed a gap analysis on its compliance with King III and will report more fully on its compliance with King III in next year’s Annual Report.

The consistent improvement in ARM’s reporting over the last two years has been recognised in the rankings obtained in the Ernst & Young Excellence in Corporate Reporting Awards. Last year’s report was ranked in the “excellent” category. In the review of ARM’s Annual Report 2009, University of Cape Town’s Geoff Everingham stated: “There has … been a commendable improvement over the years … this progress is largely due to the increased emphasis given to forward-looking information and the efforts made in sustainability reporting.”

We are conscious of the need to continuously improve our reporting to stakeholders and this year we believe we have made further progress, especially in how our sustainable development reporting has responded to the principles of inclusivity, materiality and responsiveness.

In addition to the abridged Sustainability report (PDF - 2.2MB), which is in our Integrated Annual Report, a printed stand alone version has been published. The comprehensive report includes a further level of detail and relevant case studies to demon strate the Local Economic Development and Corporate Social Investment initiatives in which ARM is involved. Printed copies of the full version of the Sustainability Report are available on request from our Investor Relations Department (see contact details) or electronically on our corporate website (www.arm.co.za). Further detail on the scope and boundaries of our Sustainability report is provided at the front of the Sustainability report (PDF - 2.2MB).

Shareholders are directed to the notice and proxy form (PDF - 72KB) for the Annual General Meeting to be held on Friday, 3 December 2010.

We invite and value feedback from our stakeholders on all our reporting mechanisms, across different media types, particularly as a way to confirm that we are covering the issues they view as most material. Stakeholders are encouraged to provide their feedback on this year’s report using the contact details provided in this report. Additional information regarding investor relations and communication with stakeholders may be found in the Investor Relations report (PDF - 84KB) and in the Sustainability report (PDF - 2.2MB).

The Integrated Annual Report has been extensively cross-referenced to enable readers to find additional information easily, while attempting to keep the level of repetition to a minimum.

All monetary values in the report are given in South African Rand (R) unless otherwise stated. Rounding figures may result in computational discrepancies on management and operational review tabulations.