14th May 2007 07:02
Lonrho Africa PLC14 May 2007 LONRHO PLC ("Lonrho" or the "Company") SIGNS JOINT VENTURE WITH COUNTERMINE TO EXPLORE LANDMINE CLEARANCE OPPORTUNIITES IN SUB-SAHARAN AFRICA Lonrho plc ("Lonrho") (AIM: LAF) and Countermine plc, ("Countermine") arepleased to announce a Joint Venture agreement ("Joint Venture") to jointlydevelop opportunities for landmine clearance in sub-Saharan Africa, allowingpreviously unusable areas of land in the region to be rehabilitated forproductive purposes. Under the terms of the Joint Venture, Lonrho will offerfunding and its extensive African business network to build the African arm ofCountermine's landmine clearance business. Countermine and Lonrho, using the ORACLE system, will provide mine clearingservices that are more effective yet less expensive than currently availablemethods. Lonrho is committed to providing services and products that support thedevelopment of African infrastructure, helping to re-invigorate localcommunities. Lonrho views the strategic partnership with Countermine as asignificant development in the implementation of its strategy. ORACLE MINE CLEARENCE Countermine produces the ORACLE mine clearance machine. At the forefront ofmine clearance technology ORACLE is the fastest and most cost effective systemavailable for landmine clearance. Only the ORACLE can move forward at anefficient rate and cost, while tilling the land to a depth of at least 50cmpreparing it for agricultural use. The ORACLE technology is tried and tested,having been contracted to the Croatian Government (CROMAC) since 2000,performing beyond expectations in clearing active minefields. The ORACLE mine-clearing system is the safest land mine clearance methodcurrently available and is approximately 100 times faster and more effectivethan manual clearing techniques. The Spitfire tool within the machine hits themines at such a high speed that it destroys the mines before detonation. Thephysical destruction from the mine clearance neutralizes mines and disperses theexplosives into the soil meaning that the land is immediately ready foragricultural or other development. Antipersonnel mines pose a massive threat to safety in all corners of the globe,claiming new victims every day, with between 15,000 and 20,000 new casualtiescaused by landmines and unexploded ordnance every year. Countermine and Lonrho will jointly evaluate potential opportunities. Based onthe successful model already used in Croatia, a local company will beestablished in each country to oversee the management and operation of theprojects. The majority of the personnel will be recruited and trained locally ineach country, supporting local job creation as well as utilising the intimatelocal knowledge of the areas that are targeted. LANDMINES IN AFRICA The presence of landmines has rendered huge expanses of land in sub-SaharanAfrica unusable. It is estimated that in Angola alone there are approximately2,900 suspected landmine areas covering a total area of some 1,300 to 1,400square kilometres. The presence of two or three landmines or even the suspicionof their presence can result in a large patch of land being avoided and leftderelict. (Source: International Campaign to Ban Landmines: www.icbl.org andLandmine Monitor Report 2006 www.icbl.org/lm/2006/ ). David Lenigas, Chairman and CEO of Lonrho commented: "We are very excited about the Joint Venture with Countermine and we see thepartnership adding value to Lonrho's growth strategy. By rehabilitating largeareas of valuable land we will make a significant difference to Africancommunities that have suffered terribly as a result of landmines. Counterminebrings with them a strong and experienced management team with all the requiredskills and knowledge combined with the best technology available to make thispartnership work." Air Marshal Sir John Walker, Vice Chairman of Countermine commented: "The very large areas around the world contaminated by landmines can only becleared in meaningful timescales by heavy mine clearance machinery. Manualmethods are too slow and result in heavy casualties amongst the de-miners. Itis satisfying that ORACLE can play its part in this worthwhile humanitariantask." Lars Nylin, CEO of Countermine commented: "We are delighted to enter into this partnership with Lonrho aimed at creating asafer environment in Africa. The Lonrho management team brings with themconsiderable experience across a variety of industries and their experience andlocal knowledge will be a key element in the success of our foray intosub-Saharan Africa. We believe that this partnership will greatly strengthen thebusiness in line with our strategy going forward." 14 May 2007 Enquiries: Lonrho +44 (0) 20 7016 5105David Lenigas, Chief Executive +44 (0)7881 825 378Emma Priestley, Executive Director +44 (0)7867 785 177 Countermine +44 (0)1233 641 084Lars Nylin +46 (0)70 416 9600Pelham PRCharles Vivian +44 (0) 20 7743 6672 +44 (0) 7977 297 903Alisdair Haythornthwaite +44 (0) 20 7743 6676 +44 (0) 771 472 1379 Notes to Editors: About Lonrho: Lonrho, listed on the London Stock Exchange's (LSE) Alternative InvestmentMarket (AIM), is in the process of re-establishing a significant presence on theAfrican continent. Its investment and acquisition strategy, which was adoptedfollowing the appointment of David Lenigas as Chairman and Chief Executive andsubsequent shareholder approval in February 2006, focuses on the infrastructure,transport, natural resources, leisure and agribusiness sectors. Lonrho'sexecutive team has considerable experience across these industries in a widerange of countries. Lonrho announced investments in Luba Freeport, Norse Air,Fly540 and Nare Diamonds Ltd in 2006 and an investment in Swissta Water, throughStrenner Holdings and Agua da Namaacha in 2007. About Countermine: Countermine, is a UK based demining company, produces the state of the artORACLE mine clearance machine. The Company has a positive track record havingworked successfully with the Croatian Government in a series of on-going mineclearance contracts since 2000. Looking to expand its client base, Countermineis now looking to jointly explore opportunities in sub-Saharan Africa withLonrho. The Company is focussed on maximising returns through the use of highlyefficient technology with the added benefit that land is returned toagricultural use far sooner than through the use of more conventional methods.Countermine offers a full spectrum of services that it believes are essential tolarge scale mine clearance. These services range from manual de-mining,explosive detection dogs and mechanical de-mining. About ORACLE: Mechanical mine clearance is faster, safer and cheaper than manual means. Theoperating method of the flagship ORACLE is to 'rotovate', or till, the land andto destroy the mines by impact and disintegration before they can explode. Ifthey explode, however, the 53 tonne machine is substantial enough, particularlythe tungsten metal rotating tool at the front, to withstand the blast from alltypes of mines. A considerable amount of power is required to clear mines atdepth while maintaining an efficient rate of advancement. Due to its availablepower, the ORACLE can dig deeper and at higher forward speed than anycompetitive system. In the high-cost mine clearance industry time is money andthe capability of the ORACLE to clear mines rapidly is fundamental to thebusiness case. When clearing mines to normal UN-specified depths, the ORACLEcan produce a practical clearance rate of 15,000 m2/h clearing to a depth of50cm, which very few other machines can achieve. ORACLE's power and efficiencymakes it the most powerful and cost effective system available. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Lonrho