| Fri 21 Dec 2007, 14:30 | | AGL - Anglo American Plc - News Release - Anglo American acquires majority |
|
AGL
ANAAL
AGL - Anglo American Plc - News Release - Anglo American acquires majority
interest in Foxleigh coal mine in Australia for US$620 million
Anglo American Plc
Incorporated in the United Kingdom
(Registration number: 3564138)
Short name: Anglo
Share code: AGL
ISIN number: GB00B1XZS820
Anglo American Plc ("the Company")
News Release - Anglo American acquires majority interest in Foxleigh coal mine
in Australia for US$620 million
21 December 2007
Anglo American plc ("Anglo American") is pleased to announce the acquisition of
a 70% interest in the Foxleigh coal mine joint venture in Queensland, Australia.
This investment of US$620 million1 adds to Anglo American`s already substantial
and growing coal mining operations in the Bowen Basin, one of the world`s
premier coal regions.
Foxleigh`s current joint venture partners, the Korean steel company POSCO and
the Japanese trading and mining investment company Itochu, will hold 20% and 10%
interests respectively.
Foxleigh currently produces 2.5 million tonnes per annum of PCI (pulverised coal
injection) coal for the steelmaking industry. Foxleigh has production capacity
of 3.3 million tonnes per annum, which it is expected to reach following
completion of rail and port expansion projects. The Foxleigh mine adjoins Anglo
Coal`s Capcoal (German Creek) operations and the associated Lake Lindsay mine
development, offering potential synergies. The mine and surrounding tenements
will be the subject of ongoing exploration and feasibility studies.
Cynthia Carroll, CEO of Anglo American, said: "The addition of Foxleigh is in
line with Anglo American`s strategic commitment to further grow our coal
business in Australia in order to meet forecast increases in global demand for
coal, particularly in the Asia-Pacific region. Foxleigh`s operations and
undeveloped assets are located in one of the world`s largest and best developed
coal provinces, with which we are very familiar. I believe Foxleigh represents
a valuable strategic and complementary addition to our portfolio of coal assets
in Australia."
The transaction is subject to regulatory approvals.
1Enterprise Value for 70% of the interest in the Foxleigh mine, at an exchange
rate of US$0.86: A$1.00 = A$721 million. Adjustments will be made at completion
date for debt, coal stocks and typical balance sheet liabilities.
For further information:
London
Investor Inquiries
Anna Poulter
Tel: +44 207 968 2155
Media Inquiries
James Wyatt-Tilby
Tel : +44 207 968 8759
Johannesburg
Media Inquiries
Pranill Ramchander
Tel : +27 11 638 2592
Notes to Editors:
Anglo American plc is one of the world`s largest mining and natural resource
groups. 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 is a wholly owned division of Anglo American plc, with significant
coal interests in South Africa, Australia, Canada and Venezuela. In 2006, Anglo
Coal`s global production was 95 million tonnes, of which Australia contributed
25 million tonnes (attributable tonnes). Anglo Coal Australia is one of
Australia`s leading coal producers with extensive coal mining interests and
prospects in Queensland, New South Wales and Victoria. (www.anglocoal.com.au)
Date: 21/12/2007 14:30:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
