| Fri 10 Oct 2008, 10:06 | | LAF - Lonrho Africa - Lonrho Signs Agreement To Develop 75 Hectare Aggregate |
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LAF
LOLAF
LAF - Lonrho Africa - Lonrho Signs Agreement To Develop 75 Hectare Aggregate
Project In Angola
Lonrho Plc
(Formerly Lonrho Africa Plc)
(Incorporated and registered in England and Wales)
(Registration number 2805337)
(Share code: LAF; ISIN number: GB0002568813)
("Lonrho Africa" or "the Company")
Lonrho signs agreement to develop 75 hectare aggregate project in Angola
10th October 2008
Lonrho Plc (AIM: LONR), the conglomerate with a structured portfolio of African
investments, is pleased to announce that it has signed an agreement to develop
an aggregate project in the Province of Bengo, Angola to supply the growing
Angolan construction industry.
The project area consists of a 75 hectare resource and is located in the area of
Quinzenze / Mussenga in the Municipality of Dande and is registered with the
Ministry of Geology and Mines and by the National Directorate for Mining
Licensing and Register as concession number 0629/71/T.E./DNLCM/2006.
A new company, Lonrho Aggregates Angola, ( LAA ), will be established. Lonrho
will own 51%,of LLA in conjunction with its local Angolan partner, Project Net
Lda which will own 14%, and the Angolan owner of the resource, Golden Market
SA, which will own the remaining 35%.
The project will be funded by a combination of shareholder loans to the new
company and local bank debt and is forecast to cost in the region of US$ 5
million, with 65% being funded by local banks. A detailed resource and
implementation plan for the project are being developed.
Angola is in the midst of a large scale construction boom and the demand for
aggregates for local consumption is significantly outstripping supply. The
importation of building materials in Angola is subject to significant delays due
to ongoing congestion at all Angola`s major ports. This has lead to growing
demand for materials to be supplied on the domestic market, to increase time and
cost efficiencies.
Tests that have been carried out on the aggregate indicate the resource is of an
excellent quality.
David Lenigas, Lonrho`s Executive Chairman commented:
"We are excited about the opportunities this will bring for Lonrho. Angola is a
key developing market in Africa, with significant potential and numerous growth
opportunities. The requirement for quality aggregates in Luanda and the
surrounding market is being driven by the major infrastructure and commercial
projects under construction. The location of this resource body is ideal as it
is situated to the north of Luanda, where it can supply the new road and
infrastructure developments being constructed for New Luanda City, and by barge,
the US$ 4.5 billion Soyo LNG refinery being constructed by Bechtel.
"The project demonstrates numerous synergies with Lonrho`s other projects in
that it secures a supply of aggregate for the various Lonrho projects under
development in Angola, including the Enditrade Logistics Terminal and the Lonrho
water bottling factory."
LONRHO ENQUIRIES
Lonrho Plc +44 (0)20 7016 5105
David Lenigas, Executive Chairman +44 (0)7881 825 378
Geoffrey White, Chief Executive +44 (0)7717 307 308
Officer
Emma de Borchgrave, Executive +44 (0)7867 785 177
Director
Pelham PR
Charles Vivian +44 (0) 20 7743 6672
+44 (0) 7977 297903
James MacFarlane +44 (0) 20 7743 6375
+44 (0) 7841 672831
Collins Stewart Europe : NOMAD to
Lonrho
Hugh Field +44 (0) 20 7523 8350
NOTES TO EDITORS
About LONRHO:
Lonrho Plc is an expanding conglomerate that is rapidly growing a successful
business throughout Africa. The Company`s shares are traded on the London AIM
stock exchange (LONR). Lonrho is strategically focused on the development of
business opportunities in infrastructure, transportation, support services,
hotels and natural resources. The Company has over 19,000 shareholders and
substantial institutional backing to support its mandate to build a profitable
business that plays a fundamental role in the development of the African
economy.
Since 2006, the Company has invested in or acquired control of:
Hotel Cardoso - www.hotelcardoso.co.mz (retained)
Lonrho Mining - www.lonrhomining.com
Luba Freeport - www.lubafreeport.com
Fly540 - www.fly540.com
Swissta Holdings - www.swissta.com
SA Independent Liner Services - www.saliners.com
Bytes and Pieces www.bytespieces.com
Kwikbuild - www.e-kwikbuild.co.za
LonZim - www.lonzim.co.uk
South African sponsor to Lonrho Plc
Java Capital (Proprietary) Limited
Date: 10/10/2008 10:06:02 Produced by the JSE SENS Department.
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