ARI - African Rainbow Minerals Limited - Assmang L
ARI
ARIM
ARI - African Rainbow Minerals Limited - Assmang Limited (Assmang) - Khumani
Iron Ore Mine
African Rainbow Minerals Limited
(Incorporated in the Republic of South Africa)
(Registration number 1933/004580/06)
JSE Share code: ARI
ISIN: ZAE000054045
("ARM" or "the Company")
Assmang Limited (Assmang) - Khumani Iron Ore Mine
Assmang which is jointly owned and controlled by ARM and Assore Limited (Assore)
announced on 26 January 2006 the construction of an 8,4 million tonne per annum
(mtpa) export mine - the Khumani Iron Ore Mine - near Kathu in the Northern Cape
Province. It is anticipated that the Khumani Mine will be commissioned by July
2008.
Assmang has reached principal agreement on a 20 year contract with Transnet for
the export of 10 mtpa of iron ore from Khumani through the Orex rail link and
Saldanha Iron Ore Export Terminal. During the 2009 financial year, 7,2 million
tonnes will be exported from Khumani and an additional 1,2 mtpa will be exported
from the existing Beeshoek Mine. From the 2010 financial year, the total tonnage
exported from Khumani will be 10 mtpa. The Beeshoek Mine will continue to supply
the local market and feasibility work on the life of mine is continuing.
The Board of Directors has approved a total capital expenditure of R4.0 billion
to construct the Khumani Mine which includes anticipated escalation costs and
incorporates capital required for the 10mtpa export operation.
Assmang in consultation with Transnet is continuing to investigate the viability
of expanding the capacity of the Transnet export channel beyond the currently
planned 47 mtpa. This could facilitate a further increase in the export capacity
for Assmang.
For further information contact:
Jan Steenkamp Pieter Rorich
Chief Executive Ferrous Executive Director Investor Relations
and New Business Development
Office: +27 11 779 1106 Office: +27 11 779 1300
Mobile: +27(0)82 492 6948 Mobile: +27(0)82 570 5064
E-mail: jan.steenkamp@arm.co.za E-mail: pieter.rorich@arm.co.za
Johannesburg
17 May 2007
Issued by sponsor: Deutsche Securities (SA) (Proprietary) Limited
Date: 17/05/2007 15:30:01 Produced by the JSE SENS Department.
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