| Tue 7 Apr 2009, 14:21 | | CZA - CoAL - ArcelorMittal South Africa acquires 16.3% stake in CoAL |
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CZA
CZA
CZA - CoAL - ArcelorMittal South Africa acquires 16.3% stake in CoAL
Coal of Africa Limited
(previously "GVM Metals Limited")
(Incorporated and registered in Australia)
(Registration number ABN 008 905 388)
Share code on the JSE Limited: CZA
ISIN AU000000CZA6
Share code on the Australian Stock Exchange Limited: CZA
ISIN AU000000CZA6
(`CoAL` or `the Company`)
7 April 2009
ARCELORMITTAL SOUTH AFRICA ACQUIRES 16.3% STAKE IN COAL OF AFRICA
ArcelorMittal South Africa today announced that it has acquired ArcelorMittal
Group`s 16.3% stake in Coal of Africa Limited ("CoAL") for R404.5 million in
cash. The price is based on the previous 15-day volume weighted average share
price of CoAL on the Johannesburg Stock Exchange ("JSE").
The transaction will secure part of ArcelorMittal South Africa`s future coal
needs, mitigating one of the company`s key variable input costs. As part of the
transaction, ArcelorMittal South Africa has secured an option to enter into an
off-take agreement with CoAL for the supply of 2.5 million tonnes of
metallurgical (coking) coal annually, with an option to raise this further in
future. ArcelorMittal South Africa last year purchased 5.2 million tonnes of
coal. This makes coal one of the largest input raw materials for the company.
In addition to securing future coal supplies, ArcelorMittal South Africa
believes that the quality of the coal it will procure from CoAL`s Vele Colliery
Project will enable the company to increase the quantity of local coal in its
overall coal mix to feed its furnaces, further enhancing management of input
costs.
Commenting on the transaction Nku Nyembezi-Heita, ArcelorMittal South Africa CEO
said: "This transaction ensures secure supplies of a key input material for the
steelmaking process and is an important step in our strategy to pursue raw
material backward integration."
CoAL is focused on the acquisition, exploration and development of thermal and
metallurgical coal projects in South Africa. Listed on the Australian Stock
Exchange ("ASX"), London`s Alternative Investment Market ("AIM") and the JSE,
the company currently has three coal projects in various stages of development
namely:
* Mooiplaats Thermal Coal Project;
* Vele Coking Coal Project (74% ownership); and
* Makhado Coking Coal Project.
CoAL also owns NiMag, an alloy processing company, and Holfontein, a small coal
project which is non core to the operations of the company.
The 16.3% stake makes ArcelorMittal South Africa CoAL`s second largest
shareholder after the 17.3% owned by Africa Management Limited, a black economic
empowerment company associated with the Mvelaphanda Group.
CoAL Managing Director Simon Farrell commented: "We welcome ArcelorMittal South
Africa as major shareholders and first customer for our coking coal products."
For more information contact:
Simon Farrell, Managing Director
CZA
+61 417 985 383 or +61 8 9322 6776
Peter Bacchus/ Alastair Cochran
Morgan Stanley
+44(0) 20 7425 8000
Simon Edwards/ Chris Sim
Evolution Securities
+44(0) 20 7071 4300
Jos Simson/ Gareth Tredway
Conduit PR
+44(0) 20 7429 6603
About CoAL:
Coal of Africa Limited ("CoAL") is primarily focused on the acquisition,
exploration and development of thermal and metallurgical coal projects. The
Company`s key projects, along with its leading metals processing company NiMag
Group (Pty) Ltd are in South Africa. The Company was incorporated in Western
Australia and listed in 1980. Since 2005, the Company has also listed on both
the AIM and JSE markets, allowing further growth in the Company`s coal assets.
About ArcelorMittal
ArcelorMittal is the world`s largest and most global steel company, with 310,000
employees in more than 60 countries. The company brings together the world`s
number one and number two steel companies, Arcelor and Mittal Steel.
ArcelorMittal is the leader in all major global markets, including automotive,
construction, household appliances and packaging, with leading R&D and
technology, as well as sizeable captive supplies of raw materials and
outstanding distribution networks. An industrial presence in 28 European, Asian,
African and American countries exposes the company to all the key steel markets,
from emerging to mature, positions it will be looking to develop in the high-
growth Chinese and Indian markets.
ArcelorMittal key financials for 2007 show revenues of USD 105.2 billion, with a
crude steel production of 116 million tonnes, representing around 10 per cent of
world steel output.
ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT),
Paris (MTP), Brussels (MTBL), Luxembourg (MT) and on the Spanish stock exchanges
of Barcelona, Bilbao, Madrid and Valencia (MTS).
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Date: 07/04/2009 14:21:07 Produced by the JSE SENS Department.
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