8th May 2008 07:01
Eurasian Natural Resources Corp Plc08 May 2008 8 May 08 Eurasian Natural Resources Corporation PLC Acquisition of 50% Stake in Chinese Ferroalloys Plant London - Eurasian Natural Resources Corporation PLC ('ENRC' or, together withits subsidiaries, the 'Group'), the holding company of a leading diversifiednatural resources group with integrated mining, processing, energy andlogistical operations based in Kazakhstan, announces the acquisition of a 50%stake in Xinjiang Tuoli Taihang Ferro-Alloy Co. LTD, a Chinese ferroalloysproducer, for RMB101,250,000 (c. USD14.5 million) in cash from Mr. Ma Yunpu. Xinjiang Tuoli Taihang Ferro-Alloy Co. LTD is one of China's largest ferrochromeplants with an annual capacity of 120,000 tonnes of high carbon ferrochrome. Itis located in Tuoli County, Xinjiang Province around 300 km from theChinese-Kazakh border. The plant has four furnaces of 12,500KVa each. ENRCcurrently supplies the plant with 70 percent of its chrome ore. The acquisition, the company's first in China, will strengthen ENRC's positionin the ferroalloys market, where it is the world's largest producer offerrochrome by chrome content. In 2007 ENRC produced 1.1 million tonnes of highcarbon ferrochrome. Commenting on the acquisition, Dr. Johannes Sittard, Chief Executive Officer ofENRC, said: "We are excited to have made our first acquisition in China, amarket we know well, and one which we believe has excellent prospects." Completion of the transaction is subject to final approval by the localgovernment of the Xinjiang Region. - ENDS - For further information, please contact:ENRCMounissa Chodieva +44 (0) 20 7389 1879James S Johnson +44 (0) 20 7389 1862 M: CommunicationsHugh Morrison +44 (0) 20 7153 1534Edward Orlebar +44 (0) 20 7153 1523Julia Kalcheva +44 (0) 20 7153 1517 About ENRC ENRC is the holding company of a leading diversified natural resources groupwith integrated mining, processing, energy, logistical, and marketingoperations. It is the world's largest producer of ferrochrome, based on chromecontent, the world's sixth largest iron ore exporter by volume and world's fifthlargest supplier of traded alumina by volume (CRU and Heinz H. Pariser, 2006data). The Group's revenues were US$4,106 million for the year ended 31 December2007 and EBITDA (before exceptional items) was US$1,906 million. For furtherinformation please see the Group's website at www.enrc.com. About ENRC's Ferroalloys Division The Ferroalloy Division of ENRC plc produces and sells ferrochrome and otherferroalloys, primarily to steel producers, and sells chrome ore and manganeseore to third-party ferroalloy producers and the chemical industry. TheFerroalloy Division's vertically integrated operations include chrome ore andmanganese ore mines, two ferroalloy processing plants and a gas-fired powerstation. The Ferroalloy Division's chrome ore reserves are believed to be thelargest in the CIS (166 million tonnes as at 31 December 2007) and are believedto have a higher grade (42.2%) than those of other large-scale producers. In 2007, the Ferroalloy Division produced approximately 3.9 million tonnes ofsaleable chrome ore (2006: 3.4 million tonnes), 0.9 million tonnes of manganeseore concentrate (2006: 0.9 million tonnes) and approximately 1.5 million tonnesof ferroalloys (2006: 1.4 million tonnes), including approximately 1.1 milliontonnes of its primary product, high-carbon ferrochrome (2006: 1.0 milliontonnes). For the year ended 31 December 2007, the Ferroalloy Division had totalthird-party revenue of US$2,178 million (2006: US$1,473 million), and EBITDAbefore exceptional items of US$1,138 million (2006: US$547 million.) Forward looking statement This announcement includes forward-looking statements that reflect the currentviews of the management of the Group with respect to future events. Theseforward-looking statements include matters that are not historical facts or arestatements regarding the Group's intentions, beliefs or current expectationsconcerning, among other things, the Group's results of operations, financialcondition, liquidity, prospects, growth, strategies, and the industries in whichthe Group operates. Forward-looking statements are based on current plans,estimates and projections, and therefore too much reliance should not be placedupon them. Such statements are subject to risks and uncertainties, most of whichare difficult to predict and generally beyond the Group's control. The Groupcautions you that forward-looking statements are not guarantees of futureperformance and that if risks and uncertainties materialise, or if theassumptions underlying any of these statements prove incorrect, the Group'sactual results of operations, financial condition and liquidity and thedevelopment of the industry in which the Group operates may materially differfrom those made in, or suggested by, the forward-looking statements contained inthis announcement. In addition, even if the Group's results of operations,financial condition and liquidity and the development of the industry in whichthe Group operates are consistent with the forward-looking statements containedin this announcement, those results or developments may not be indicative ofresults or developments in future periods. The Group does not undertake anyobligation to review or confirm analysts, expectations or estimates or torelease publicly any revisions to any forward-looking statements to reflectevents that occur or circumstances that arise after the date of thisannouncement. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
ENRC.L