| Tue 4 Sep 2007, 8:53 | | AGL - Anglo American plc - Anglo Platinum Anooraq |
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AGL
ANAAL
AGL - Anglo American plc - Anglo Platinum, Anooraq Resources and Mvela Resources
BEE transactions facilitate meaningful and sustainable empowerment in
the platinum industry
Anglo American plc
Incorporated in the United Kingdom
(Registration number: 3564138)
Short name: Anglo
Share code: AGL
ISIN number: GB00B1XZS820
("Anglo American plc" or "the company")
Anglo American plc notification:
Anglo American plc wishes to draw your attention to the following announcement
issued today by Anglo Platinum Limited:
Anglo Platinum, Anooraq Resources and Mvela Resources BEE transactions
facilitate meaningful and sustainable empowerment in the platinum industry
4 September 2007
Anglo Platinum, Anooraq Resources and Mvela Resources today announced that they
had reached agreement on transactions that will result in the creation of two
substantial, Historically Disadvantaged South African (HDSA) managed and
controlled South African platinum group metal (PGM) producers, with critical
mass and significant growth potential.
In terms of the transactions, Anglo Platinum will sell an effective 51% of
Lebowa Platinum and an effective 1% of the Ga-Phasha Project for a total
consideration of R3.6 billion to Anooraq. Following this transaction Anooraq,
being the current owner of 50% of Ga-Phasha, will own an effective 51% of Lebowa
and Ga-Phasha through a newly created vehicle, Lebowa Holdco. Mvela Resources
will purchase Anglo Platinum`s 50% interest in the Booysendal Project and 22.4%
direct interest in Northam for a total consideration of R4 billion.
Anglo Platinum and Anooraq have also agreed in principle to transfer, in due
course, their respective 50% interests in the Boikgantsho and Kwanda JV Projects
into Lebowa Holdco such that Lebowa Holdco will own 100% of these assets.
As a result of these transactions Anooraq and Mvela Resources will respectively
control the 3rd and 5th largest PGM resource bases in South Africa, resulting in
fundamental and sustainable transformation of the country`s platinum industry.
Anglo Platinum also announced an employee share ownership plan (ESOP) that will
benefit more than 43,000 employees. The new scheme covers all employees who do
not participate in any Anglo Platinum share scheme and will comprise up to 1.5%
of Anglo Platinum`s issued share capital (current market value of approximately
R3.3 billion).
These transactions reflect Anglo Platinum`s commitment to transformation and
broad-based BEE and, together with Anglo Platinum`s ESOP will result in
approximately R35 billion of assets under HDSA control.
Anglo American CEO, Cynthia Carroll commented: "This is a truly historic BEE
transaction which will fundamentally transform the South African platinum mining
industry through the creation of two major independent HDSA managed and
controlled PGM producers. The sale by Anglo Platinum of mining assets will
achieve meaningful, sustainable and broad-based empowerment through the
participation of communities, employees and women. Anglo American is strongly
committed to the equitable and sustainable development of the countries and
communities in which we operate and I believe this transaction represents
another significant step forward in the empowerment of our South African
operations."
Anglo Platinum acting joint CEO, Norman Mbazima said of the transaction: "These
transactions illustrate Anglo Platinum and Anglo American`s commitment to broad-
based BEE as a strategic transformation initiative. We believe that the creation
of two major HDSA managed and controlled participants within the global platinum
industry fundamentally enhances BEE and the equitable transformation of the
mining industry."
He continued: "We have sold a portfolio of quality, long life assets and created
two global PGM participants with critical mass and significant growth potential.
We are also pleased with the breadth of the broad-based component of our
empowerment efforts. The staff employee scheme and the participation of women`s
groups and community groupings will add to the investment in Anglo Platinum`s
social and labour plans as part of its broad-based transformation strategy."
Tumelo Motsisi, Deputy CEO and Managing Director of Anooraq Resources, said:
"This transaction accomplishes two of our original objectives. It immediately
transforms Anooraq into a significant PGM producer and fulfils Anooraq`s and
Pelawan`s stated objective of creating an HDSA controlled, independent and
significant PGM producer. Anooraq`s reserves and resources will increase
significantly such that we will now control the third largest PGM resource base
in South Africa."
"Lebowa is an excellent asset to add to our stable. It has attractive grades,
established water, power and road infrastructure and an approved expansion in
place to double existing production by 2012 as well as a number of other
exciting growth opportunities."
"Upon implementation of the transaction control of the operations at our
platinum projects and Lebowa will pass to Anooraq. This will allow us to
evaluate our project pipeline and develop the assets in accordance with
Anooraq`s timetable. We will also be in a position to strengthen our technical
capacity through our enhanced relationship with Anglo Platinum."
Lazarus Zim, Executive Chairman of Mvela Resources and Afripalm Resources, said:
"Today is a great day for South Africa. When we announced our investment in
Mvela Resources we made it clear that our ultimate strategy was about building
an operating diversified mining company. This transaction has enabled us to
realise an important step in the delivery of that strategy. We fully believe
that this is a sustainable, meaningful and substantial transaction and a great
deal for independent empowerment mining."
"These transactions have considerable social impact and achieve significant
empowerment of local communities by introducing them as shareholders. Afripalm
has already set aside 10% of its shares for women and has committed to transfer
51% of its subsidiary, Afripalm 2, to broad-based groups representing at least
5,000 women."
The implementation of these transactions will be subject to a number of
conditions precedent including completion of confirmatory due diligence, raising
of relevant financing, conclusion of the requisite agreements, approval by the
relevant regulatory authorities and other third parties, and approval by
shareholders, where required, in general meetings.
Anglo Platinum, Anooraq Resources and Mvela Resources believe that the
meaningful participation by beneficiaries in the transactions recognises the
importance of local communities and employees and promotes gender equality and
broad-based ownership. The inclusion of women as shareholders is in line with
Anglo Platinum`s transformation objectives for the mining sector and the
participation of community groupings associated with the operating mines, and
from labour sending areas, will benefit in excess of 55,000 HDSAs.
-ends-
Further details on the media and analyst presentation to be held on 4 September
2007 (including Summit TV and webcast information) are available on the
respective company websites
Contact details:
Anglo Platinum +27 11 373-6462
Trevor Raymond +27 82 654 8467
(www.angloplatinum.com)
Mvela Resources + 27 11 325 5323
James Wellsted + 27 83 453 4014
(www. mvelares.co.za)
Anooraq Resources + 27 11 883 0831
Joel Kesler
(www. anooraqresources.com )
Brunswick +27 11 268 5750
Rob Pinker +27 83 326 7794
Itumeleng Mahabane + 27 83 284 6774
College Hill for Anooraq Resources + 27 11 447 3030
Nicholas Williams + 27 83 607 0761
Nandile Ngubentombi + 27 82 825 8004
Notes to Editors:
Mvela Resources
Mvela Resources is an HDSA company, its major shareholders being Afripalm
Resources Limited which has an economic interest of 19.2% and a voting interest
of 30.8% and Mvelaphanda Holdings Limited, which has an economic interest of
22.7% and a voting interest of 19.5%. Afripalm Resources has broad-based
participation through Unipalm Investment Holdings Limited, which is a 15%
shareholder in Afripalm Resources, and trusts, representing broad-based women,
employees and communities, which own a further 30% in Afripalm Resources.
Unipalm is a national broad-based empowerment group representing more than 30,
000 broad-based HDSAs.
Since its inception in 2001, Mvela Resources has acquired significant
investments in the South African gold, platinum and diamond sectors, as well as
exploration and development joint ventures in sub-Saharan Africa, with a focus
on South Africa. Listed investments include a 21.8% interest in Northam and a
fully diluted 20.7% interest in Trans Hex Group Limited ("Trans Hex"). Mvela
Resources, through its wholly-owned subsidiary Mvela Gold, holds a 15% interest
in Gold Fields Mining South Africa (Proprietary) Limited, an unlisted subsidiary
of Gold Fields Limited which houses Gold Fields` South African operations
including the Driefontein, Kloof, Beatrix and South Deep mines. Exploration and
development joint ventures have been established with global mining groups such
as De Beers Consolidated Mines Limited, Trans Hex and Lonmin plc.
Anooraq Resources
Anooraq is engaged in the exploration and development of PGM properties in the
Bushveld Complex and has a long-term objective of becoming a significant PGM
producer in South Africa through organic and acquisitive growth. Its assets
include 50% interests in the Ga-Phasha, Boikgantsho and Kwanda JV Projects.
Anooraq is incorporated in the Province of British Columbia, Canada and is 64.6%
owned and controlled by Pelawan, which also holds 167 million Anooraq warrants.
Anooraq has a primary listing on the Toronto Venture Exchange with secondary
listings on the American Stock Exchange and the JSE Limited.
Pelawan`s shareholder base comprises 15 broad-based BEE entities, including
women investment groups, which account for approximately 42% of Pelawan,
cultural trusts and Limpopo-based rural groups within the proximity of Anooraq`s
operations. Anooraq is one of the leading mining companies committed to women
ownership in the mining sector. Women`s interests include Mookodi Trading,
Africa Without Boundaries Mining and Leswika Women`s Investments. Each of these
women`s groups is committed to the advancement of women`s interests and provide
a meaningful contribution to Pelawan at board level.
Date: 04/09/2007 08:53:38 Produced by the JSE SENS Department.
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