MML - Metmar Limited - Metmar to benefit from manganese investments
MML
MML
MML - Metmar Limited - Metmar to benefit from manganese investments
Metmar Limited
Incorporated in the Republic of South Africa
Registration number: 1998/007269/06
Share code: MML
ISIN code: ZAE000078747
("Metmar")
Metmar to benefit from manganese investments
Metmar is deriving substantial benefits from its investment in Kalahari
Resources (Proprietary) Limited ("Kalahari") which has a shareholding in
Kalagadi Manganese (Proprietary) Limited ("Kalagadi") Kalagadi is developing the
Kalagadi Manganese Project ("the project") located near Kuruman, Northern Cape
as well as a smelter complex in Coega.
The project`s prospects were confirmed in November 2007, when ArcelorMittal
acquired a 50% stake in Kalagadi in a deal valuing their share of the project at
R2.3 billion. The Industrial Development Corporation has a 10% stake in the
project with Kalahari owning the remaining 40%. Metmar owns 11.66% of Kalahari.
Kalahari has announced its intention to make a cash distribution of R223
million, enabling its shareholders, which include a broad based women-led BEE
consortium, to derive value from their investment in the project.
Metmar`s long term strategy of taking minority equity stakes in mineral
production projects is paying off. Metmar invested at the outset of this
project, and is now benefiting with a cash payout of R26 million.
In addition, ArcelorMittal last week announced its commitment of US$432.5
million to develop a 3 million ton per annum manganese mine, a planned 2.4
million ton per annum sinter plant near Kuruman and a 320 000 metric ton per
annum manganese alloy plant at Coega. The pre-feasibility study completed in
2007 confirmed a total inferred mineral resource of 39 million tons of manganese
ore at a grade of 38.9%, which will support the project for at least 20 years.
Bryanston
8 September 2008
Sponsor
QuestCo Sponsors (Proprietary) Limited
Date: 08/09/2008 14:08:01 Produced by the JSE SENS Department.
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