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ASR
ASR
ASR - Assore Limited - Announcement by Assore in respect of Assmang Limited`s
Khumani Iron Ore Mine and planned expansion project
Assore Limited
(Incorporated in the Republic of South Africa)
Registration number: 1950/037394/06
Share code: ASR
ISIN: ZAE000017117
("Assore")
ANNOUNCEMENT BY ASSORE IN RESPECT OF ASSMANG LIMITED`S KHUMANI IRON ORE MINE AND
PLANNED EXPANSION PROJECT
Assmang Limited ("Assmang"), which is jointly controlled by African Rainbow
Minerals ("ARM") and Assore Limited ("Assore"), is pleased to announce that:
* The 10 million tonne per annum ("mtpa") Khumani Iron Ore Mine ("Khumani")
has been completed on time and within budget; and
* The Assmang Board of Directors has approved additional capital expenditure
("capex") of R5.5 billion for the completion of the Khumani Expansion
Project, to increase Khumani`s capacity from the current level of 10 mtpa
to 16 mtpa.
The estimated total capex for the proposed Khumani Expansion Project is R6.7
billion based on the feasibility study completed in June 2009, which compares
favourably to the previous estimate in September 2008 of R7.2 billion.
Expenditure of R1.2 billion has already been approved in September 2008 for
early works and long lead items, hence the outstanding capital requirement for
the completion of the Khumani Expansion Project comes to R5.5 billion.
Of the 6 mtpa expansion, 4 mtpa is intended for the export market and 2 mtpa for
the domestic market. Assmang has received a commitment from Transnet to extend
the current Iron Ore Export allocation on the Sishen/Saldanha export channel
from 10 mtpa to 14 mtpa, increasing Assmang`s export capacity accordingly. This
dovetails with the Iron Ore channel expansion from 47 mtpa to 60 mtpa.
Assmang will fund the completion of the Khumani Expansion Project utilising
existing cash resources, operational cashflows and existing borrowing
facilities. The Khumani Expansion Project has robust returns and the high grade
iron ore resource, with an excellent stripping ratio of 1.7 over the life of
mining operations, ensures competitive mining costs.
Illovo Boulevard
Johannesburg
12 August 2009
Sponsor to Assore
Standard Bank
For further information please contact
Phil Crous
EXECUTIVE DIRECTOR : ASSORE
Office: (011) 770 6909
Mobile: 083 250 9994
E-mail: philcrous@assore.com
Chris Cory
CHIEF EXECUTIVE : ASSORE
Office: (011) 770 6888
Date: 12/08/2009 14:12:28 Produced by the JSE SENS Department.
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