13th Oct 2005 07:00
Anglo American PLC13 October 2005 News Release 13 October 2005 Anglo American welcomes Kumba empowerment transaction Following the announcement earlier today by Anglo American plc ("Anglo American"), Kumba Resources Limited ("Kumba") and Eyesizwe Mining Limited relating tothe proposed empowerment transaction in respect of Kumba, Anglo American wishesto draw shareholders' attention to the following key aspects of the transaction. As part of the transaction, Kumba's iron ore assets, held through Sishen IronOre Company (Pty) Ltd ("SIOC"), will be transferred to a new company, Kumba IronOre, and unbundled to all existing Kumba shareholders. Following the completionof the transaction, there will be two separate listed entities, namely: • Kumba Iron Ore: which will own 74% of SIOC • Newco: which will have significant coal, heavy minerals and zinc assets, together with a 20% holding in SIOC As a result of this transaction, Anglo American will: • own 66.2% of Kumba Iron Ore (the balance will be 20% freefloat and 14%held by the IDC) which will give Anglo American an effective direct economicinterest of 49% in SIOC, in addition to a further indirect interest of 3%through Anglo American's 17% stake in Newco • retain 17% of Newco as a demonstration of its long-term commitment toNewco of which 10% will be locked in for 10 years • on the proviso that Newco becomes fully empowered and, subject tocertain conditions, grant options to Newco to acquire 100% of Namakwa Sands and26% of the Black Mountain zinc mine and the Gamsberg zinc project at a totalfixed price of R2.3 billion ($350 million) • receive an aggregate cash consideration of R7.2 billion ($1.1billion), including the sale of Namakwa Sands and the stakes in Black Mountainand Gamsberg This transaction secures Anglo American its long term investment in iron ore, acore part of the Group's portfolio. Kumba Iron Ore has significant growthopportunities with production targeted to increase from 31 to 44 million tonnesper annum by 2008. Kumba Iron Ore also has other projects under considerationincluding the 12 million tonnes per annum Faleme project in Senegal. The transaction represents a significant step forward for Anglo American interms of satisfying the requirements of Black Economic Empowerment ("BEE") andthrough Newco, creates South Africa's premier empowerment diversified miningcompany. Tony Trahar, Chief Executive of Anglo American said: "We are very pleased tohave created Kumba Iron Ore, a pure play iron ore company and the world's fifthlargest iron ore producer. Kumba Iron Ore has a world-class portfolio of ironore assets together with significant growth opportunities, both in South Africaand other parts of the world. As a result of today's transaction, Anglo American has helped to create Newco asSouth Africa's flagship empowerment diversified mining company, with a stronginvestment case and capable of sustainable growth. Anglo American is fullysupportive of the letter and spirit of the Mineral and Petroleum ResourcesDevelopment Act and the Mining Charter. We believe that the scale and structureof this transaction demonstrates Anglo American's strong commitment totransformation." 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) For the full details of the transaction and details of the webcast presentation,please go to www.angloamerican.co.uk For further information, please contact: Investor Relations Media RelationsNick von Schirnding Kate AindowTel: +44 207 968 8540 Tel: +44 207 968 8619 Charles Gordon Daniel NgwepeTel: +44 207 968 8933 Tel: +27 11 638 2267 Anne DunnTel: +27 11 638 4730 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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