7th Dec 2007 13:44
Anglo American PLC07 December 2007 News Release 7 December 2007 Anglo American announces approval of the Zondagsfontein coal project Anglo American plc is pleased to announce the approval of the US$505 millionZondagsfontein coal project in South Africa, the first major project for AngloInyosi Coal (AIC). AIC, 73% owned by Anglo Coal and 27% by Inyosi, is a BlackEconomic Empowerment company created earlier this year as part of Anglo Coal'ssecond wave of empowerment. Inyosi's shareholders will include the LithembaConsortium, Pamodzi Coal, WDB Investment Holdings and local mine communitytrusts. The project is situated near the town of Ogies in the MpumalangaProvince of South Africa. The Zondagsfontein project comprises the following: • A multi-product operation, positioned in the lowest quartile of the cost curve, delivering 6 million tons per annum (Mtpa) from its underground mine and opencast pit over a life of 20 years, consisting of 3 Mtpa of thermal export product and 3 Mtpa of domestic product; coal reserves are in excess of 250 million tons; • A washing plant, known as the Phola Coal Processing Plant, a 50:50 joint venture between AIC and BHP Billiton Energy Coal South Africa Limited (BHP Billiton). The plant will be fed equally from the Zondagsfontein Project and BHP Billiton's Klipspruit Colliery. It will be constructed by Anglo Coal and jointly managed by AIC and BHP Billiton. Preparation of the site has begun, and construction is planned to start in early2008, with production commencing in the second half of 2009, reaching fullproduction by 2011. It is envisaged that this project will create employment for more than 1,000people when completed, in addition to contributing substantially to the economicdevelopment of the region through infrastructure development and providingprocurement opportunities for local businesses. John Wallington, CEO of Anglo Coal, said "This is indeed a vote of greatconfidence by Anglo American in this first Anglo Inyosi Coal project and inAnglo Coal's growth strategy in South Africa". For further information, please contact: London Investors: Media:Anna Poulter James Wyatt-TilbyTel: +44 20 7968 2155 Tel: +44 20 7968 8759 Johannesburg Media:Pranill RamchanderTel: +27 11 638 2592Mobile: +27 82 330 4053 Notes for editors: Anglo American plc is one of the world's largest mining and natural resourcegroups. Together with its subsidiaries, joint ventures and associates, it is aglobal leader in platinum group metals and diamonds, with significant interestsin coal, base and ferrous metals, as well as an industrial minerals business anda stake in AngloGold Ashanti. The Group is geographically diverse, withoperations in Africa, Europe, South and North America, Australia and Asia.(www.angloamerican.co.uk) Anglo Coal, a wholly owned division of Anglo American plc, announced earlierthis year that it had created Anglo Inyosi Coal, an empowered coal companyhousing key current and future domestic and export focused coal operations.Anglo Coal signed the transaction completion agreements with Inyosi, abroad-based BEE consortium on 28 November 2007. In terms of the agreement,Inyosi will acquire 27% of Anglo Inyosi Coal, creating a company valued at R7billion and incorporating several key Anglo Coal assets, namely Kriel Colliery(an existing mine) and the Elders, Zondagsfontein, New Largo and Heidelbergprojects. Inyosi is led by the Lithemba Consortium and Pamodzi Coal and has a beneficiarybase that will benefit in excess of 27,000 individuals, the majority of whom arefemale historically disadvantaged South Africans (HDSA's). WDB InvestmentHoldings will also be a shareholder and Anglo Inyosi Coal will create anindependent broad-based community trust that will benefit HDSA communitiesaround its operations and other marginalised and impoverished communities inSouth Africa. These broad-based groups will receive an annual allocation of upto R5 million to enable the initiation of socio-economic community basedprojects. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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