The Marikana mining rights areas are underlain by the Merensky Reef and the UG2 Reef over a strike length of approximately 27 km. Both the Merensky and the UG2 reefs sub-outcrop below a thin layer of black cotton soil along the strike length of the lease area, although most of the near outcrop ore has been removed by open pit mining. The strata and reefs strike in an approximately east west direction and generally dip between 8°N in the west, gradually increasing to 13°N in the extreme east of the property. The UG2 Reef underlies the Merensky Reef by between 130 m and 210 m, the middling between the two reefs gradually increasing across the mining right from west to east. The layered nature of the Bushveld Complex makes it possible to identify different lithological and stratigraphic units, which facilitates the interpretation of geological disturbances such as dykes, faults, potholes and IRUP.

At the Marikana Operations, the UG2 Reef normally comprises a narrow tabular chromitite layer, which varies in thickness between 1.0 m and 1.4 m. Localised internal waste comprising pyroxenite or anorthosite can occur which is included in the Mineral Resource. To the west of the property the Leader Chromitite layer separates from the main UG2 Chromitite creating a zone of “split reef”. This affects the far western areas of K3 and K4 and the future K5 shaft blocks.

The Merensky Reef varies across the Marikana mining right area. This variability is used to define several facies (or reef sub-types) based on the occurrence of distinct lithological units within the reef. Two major types, pegmatoidal and non-pegmatoidal facies, occur. These have been separated further into a total of five different facies based on the occurrence of thin chromitite layers in the order of several millimetres thick. It has long been recognised that grade and thickness characteristics are controlled by the facies and it is important that this is recognised in correctly modelling the Mineral Resource.

At least four reef cuts are obtained from each surface drillhole, providing material for assay as well as mineralogical, metallurgical and
geotechnical test-work. Standard procedures are used to acquire the geological data, which are stored in a relational database.

Lonmin successfully converted its Marikana mining rights in 2007 and subsequently, where appropriate, amended these rights to include an entitlement to mine associated minerals and metals as well as PGM's.

Lonmin currently has eight contributing shafts of which the primary vertical shaft complexes account for the largest portion of the mineral reserves. The incline and vertical shafts that service the mining blocks are categorised into three types, being Generation 1 (operations in decline), Generation 2 (operations in steady state) and Generation 3 (operations preparing for build-up). The Generation 1 operations have high unit costs, whereas lower unit cost occurs in Generation 2; with Generation 3 having high capital requirements.

The Merensky and the UG2 reefs are mined simultaneously at an average depth of 500 metres and are accessed via infrastructure consisting of shallow incline and deep vertical shafts. The underground mining methods at Marikana are conventional up-dip, down-dip and breast stoping as well as a hybrid stoping method (a combination of mechanised and conventional methods). Ore sourced from shafts using conventional stoping methods accounts for approximately 87 % of the Marikana ore production, 13 % from mechanised/hybrid methods.

The ore mined at the Marikana Operations is processed through eight concentrators on site with a combined milling capacity of approximately 1.2 million tonnes of ore per month. Of these concentrators, one is a dedicated Merensky Plant with the Karee A Plant having a dual ore-type processing capability. The concentrate produced is dispatched to the smelter where a sulphide rich matte is produced for further processing at
the Base Metal Refinery (BMR).

At Marikana, concentrator capacity has been expanded via the addition of a dense media separation plant.