| Fri 7 Dec 2007, 16:15 | | AGL - Anglo American Plc - Anglo American announces approval of the |
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AGL
ANAAL
AGL - Anglo American Plc - Anglo American announces approval of the
Zondagsfontein coal project
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")
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 million
Zondagsfontein coal project in South Africa, the first major project for Anglo
Inyosi Coal (AIC). AIC, 73% owned by Anglo Coal and 27% by Inyosi, is a Black
Economic Empowerment company created earlier this year as part of Anglo Coal`s
second wave of empowerment. Inyosi`s shareholders will include the Lithemba
Consortium, Pamodzi Coal, WDB Investment Holdings and local mine community
trusts. The project is situated near the town of Ogies in the Mpumalanga
Province 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
early 2008, with production commencing in the second half of 2009, reaching
full production by 2011.
It is envisaged that this project will create employment for more than 1,000
people when completed, in addition to contributing substantially to the
economic development of the region through infrastructure development and
providing procurement opportunities for local businesses.
John Wallington, CEO of Anglo Coal, said "This is indeed a vote of great
confidence by Anglo American in this first Anglo Inyosi Coal project and in
Anglo Coal`s growth strategy in South Africa".
For further information, please contact:
London
Investors: Media:
Anna Poulter James Wyatt-Tilby
Tel: +44 20 7968 2155 Tel: +44 20 7968 8759
Johannesburg
Media:
Pranill Ramchander
Tel: +27 11 638 2592
Mobile: +27 82 330 4053
Notes for editors:
Anglo American plc is one of the world`s largest mining and natural resource
groups. Together with its subsidiaries, joint ventures and associates, it is a
global leader in platinum group metals and diamonds, with significant
interests in coal, base and ferrous metals, as well as an industrial minerals
business and a stake in AngloGold Ashanti. The Group is geographically
diverse, with operations 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 earlier
this year that it had created Anglo Inyosi Coal, an empowered coal company
housing key current and future domestic and export focused coal operations.
Anglo Coal signed the transaction completion agreements with Inyosi, a broad-
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 R7 billion
and incorporating several key Anglo Coal assets, namely Kriel Colliery (an
existing mine) and the Elders, Zondagsfontein, New Largo and Heidelberg
projects.
Inyosi is led by the Lithemba Consortium and Pamodzi Coal and has a
beneficiary base that will benefit in excess of 27,000 individuals, the
majority of whom are female historically disadvantaged South Africans
(HDSA`s). WDB Investment Holdings will also be a shareholder and Anglo Inyosi
Coal will create an independent broad-based community trust that will benefit
HDSA communities around its operations and other marginalised and impoverished
communities in South Africa. These broad-based groups will receive an annual
allocation of up to R5 million to enable the initiation of socio-economic
community based projects.
Date: 07/12/2007 16:15:01 Produced by the JSE SENS Department.
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