1st Jun 2005 07:00
Anglo American PLC01 June 2005 News Release 1 June 2005 Anglo American invests in Shenhua Anglo American plc ("Anglo American") has committed to invest US$150 million inthe Initial Public Offering of China Shenhua Energy Company Limited ("Shenhua")announced earlier today by Shenhua in Hong Kong. The Shenhua Group was founded in 1995 as a state owned enterprise aimed at thedevelopment of a large integrated coal-based energy company focusing on the coaland power businesses in China. Shenhua comprises thermal coal mining operations,rail transport infrastructure, the loading port at Huanghua and a powergeneration business. Production has grown from 60 million tonnes per annum(mtpa) in 2002 to 101 mtpa in 2004 and plans are in place to increase coalproduction to 149 mtpa by 2007. Shenhua's coal operations are principally located in northern Shaanxi/InnerMongolia, 500 km west of Beijing and comprise four mining groups: ShendongMines, Wanli Mines, Zhunge'er Mines and Shengli Mines, with 21 operating minesin western and northern China. In 2004, the group accounted for approximately5.2% of China's total raw coal production. Tony Redman, Chairman of Anglo Coal, said, "China is an important player in theglobal coal sector and we have been actively pursuing a strategy of developing aChina-based coal business. Anglo Coal is already involved in an explorationprogramme in the Shaanxi Province. The strategic investment in Shenhua furtherstrengthens Anglo Coal's China strategy. We are pleased to be co-operating withShenhua - it has long-standing experience in the region and we look forward to amutually beneficial strategic alliance with the group." In 2004, Anglo Coal completed a joint exploration agreement with the ShaanxiCoalfield Geology Bureau to investigate the potential of the Xiwan coal lease.The first phase of a structured exploration programme was completed during thelatter part of 2004. Drill hole results confirm that the coal lease has thepotential to support a major coal mining operation, but this would take sometime to develop. Tony Redman continued, "the benefit of the investment in Shenhua is that it isthe largest coal producer in China and the 5th largest in the world based on its2004 production. It is also the largest export coal producer in China,exporting 26.6 mtpa in 2004, approximately 37% of China's total thermal coalexports. With a portfolio of high quality coal reserves, Shenhua is wellpositioned to secure attractive market opportunities in China. Anglo Coal isdelighted to be associated with the Shenhua group and its future growth." For further information: Anglo American - LondonInvestor Relations Media RelationsCharles Gordon Kate AindowTel: +44 207 968 8933 Tel: +44 207 968 8619 Anglo American - JohannesburgInvestor Relations Media RelationsAnne Dunn Daniel NgwepeTel: +27 82 448 2684 Tel: +27 11 638 2267 Notes to Editors: Anglo American plc is one of the world's largest mining and natural resourcegroups. With its subsidiaries, joint ventures and associates, it is a globalleader in platinum group metals, gold and diamonds, with significant interestsin coal, base and ferrous metals, industrial minerals and paper and packaging.The group is geographically diverse, with operations in Africa, Europe, Southand North America, Australia and Asia. (www.angloamerican.co.uk) This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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