21st Dec 2007 11:39
Anglo American PLC21 December 2007 News Release 21 December 2007 Anglo American acquires majority interest in Foxleigh coal mine in Australia for US$620 million Anglo American plc ("Anglo American") is pleased to announce the acquisition ofa 70% interest in the Foxleigh coal mine joint venture in Queensland, Australia.This investment of US$620 million(1) adds to Anglo American's alreadysubstantial and growing coal mining operations in the Bowen Basin, one of theworld's premier coal regions. Foxleigh's current joint venture partners, the Korean steel company POSCO andthe Japanese trading and mining investment company Itochu, will hold 20% and 10%interests respectively. Foxleigh currently produces 2.5 million tonnes per annum of PCI (pulverised coalinjection) coal for the steelmaking industry. Foxleigh has production capacityof 3.3 million tonnes per annum, which it is expected to reach followingcompletion of rail and port expansion projects. The Foxleigh mine adjoins AngloCoal's Capcoal (German Creek) operations and the associated Lake Lindsay minedevelopment, offering potential synergies. The mine and surrounding tenementswill be the subject of ongoing exploration and feasibility studies. Cynthia Carroll, CEO of Anglo American, said: "The addition of Foxleigh is inline with Anglo American's strategic commitment to further grow our coalbusiness in Australia in order to meet forecast increases in global demand forcoal, particularly in the Asia-Pacific region. Foxleigh's operations andundeveloped assets are located in one of the world's largest and best developedcoal provinces, with which we are very familiar. I believe Foxleigh representsa valuable strategic and complementary addition to our portfolio of coal assetsin Australia." The transaction is subject to regulatory approvals. (1)Enterprise Value for 70% of the interest in the Foxleigh mine, at an exchange rate of US$0.86: A$1.00 = A$721 million. Adjustments will be made at completion date for debt, coal stocks and typical balance sheet liabilities. For further information: London Investor Inquiries Media Inquiries Anna Poulter James Wyatt-Tilby Tel: +44 207 968 2155 Tel : +44 207 968 8759 Johannesburg Media Inquiries Pranill Ramchander Tel : +27 11 638 2592 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 and diamonds, with significant interests incoal, base and ferrous metals, as well as an industrial minerals business and astake in AngloGold Ashanti. The Group is geographically diverse, with operationsin Africa, Europe, South and North America, Australia and Asia. (www.angloamerican.co.uk) Anglo Coal is a wholly owned division of Anglo American plc, with significantcoal interests in South Africa, Australia, Canada and Venezuela. In 2006, AngloCoal's global production was 95 million tonnes, of which Australia contributed25 million tonnes (attributable tonnes). Anglo Coal Australia is one ofAustralia's leading coal producers with extensive coal mining interests andprospects in Queensland, New South Wales and Victoria. (www.anglocoal.com.au) This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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