| Fri 24 Oct 2008, 14:00 | | ARI - African Rainbow Minerals Limited - Announcement by African Rainbow |
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ARI
ARIM
ARI - African Rainbow Minerals Limited - Announcement by African Rainbow
Minerals Limited
African Rainbow Minerals Limited
(Incorporated in the Republic of South Africa)
(Registration number 1933/004580/06)
JSE Share code: ARI
ISIN: ZAE000054045
("ARM" or the "Company")
Announcement by African Rainbow Minerals Limited ("ARM")
Johannesburg, 24 October 2008
Significant adverse changes in the dynamics of the global economy have led to
a downturn cycle in most economic sectors. For ARM the most significant
immediate impact is the sudden decline in demand for its products in the spot
commodity markets, more specifically the demand for Ferrochrome and Chrome
Ores.
This change in demand,has necessitated a review of the production schedules of
Assmang`s Chrome Division and Nkomati Chrome operations. To achieve the
necessary reduction in volume the following actions have been taken:
* Assmang will switch-out two of its Ferrochrome Furnaces at the
Machadodorp Works as from Saturday, 25 October 2008, until demand has
recovered. Dwarsrivier will continue mining and review the situation on
an ongoing basis. Assmang is jointly controlled between ARM (50%) and
Assore Limited (50%).
* Nkomati expects to reduce chrome ore and concentrate sales, will continue
mining the chrome as part of the pre-stripping of the pits for the
Nkomati Nickel large scale expansion and will stockpile the chrome ore.
Nkomati Nickel and Chrome mine is jointly controlled between ARM (50%)
and Norilsk Nickel (50%).
ARM, together with our partners, will review the situation on all operations
on an ongoing basis, taking cognisance of the uncertain market conditions and
considers the measures adopted to be prudent.
Andre Wilkens, Chief Executive Officer said: "Under these uncertain times, the
fittest company will come out strongest and see the opportunities. ARM still
views the longer term growth prospects for the commodity market as strong.
With the exception of chrome, production at ARM`s existing operations and
expansion projects remain unaffected. We continue to aggressively focus on the
cost competitiveness of our operations and cautious capital investment."
ENDS
For all more information please contact:
Monique Swartz
Corporate Development and Head of Investor Relations
Office: +27 11 779 1507
Mobile: +27 83 411 2881
E-mail: monique.swartz@arm.co.za
Or
Jan Steenkamp
Chief Executive: ARM Ferrous
Office: +27 11 779 1108
Mobile: +27 82 492 6948
E-mail: jan.steenkamp@arm.co.za
Or
Stompie Shiels
Executive Director: Business Development
Office: +27 11 779 1476
Mobile: +27 82 412 1004
E-mail: Stompie.shiels@arm.co.za
Issued by sponsor: Deutsche Securities (SA) (Proprietary) Limited
Date: 24/10/2008 14:00:10 Produced by the JSE SENS Department.
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