| Mon 10 May 2010, 8:01 | | AGL - Anglo American plc - Anglo American announces sale of Zinc portfolio to |
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AGL
ANAAL
AGL - Anglo American plc - Anglo American announces sale of Zinc portfolio to
Vedanta for $1,338 million
Anglo American plc
Incorporated in the United Kingdom
(Registration number: 3564138)
Short name: Anglo
Share code: AGL
ISIN number: GB00B1XZS820
Anglo American announces sale of Zinc portfolio to Vedanta for $1,338 million
Anglo American plc ("Anglo American") announces that it has agreed to sell its
portfolio of zinc assets ("Anglo American Zinc") to Vedanta Resources plc
("Vedanta") for a total consideration of $1,338 million on an attributable, debt
and cash free basis.
Anglo American Zinc comprises the Skorpion mine in Namibia, the Lisheen mine in
Ireland and a 74% interest in Black Mountain Mining in South Africa, which holds
100% of the Black Mountain mine and the Gamsberg project. Of the total
consideration, $698 million relates to the Skorpion mine, $308 million relates
to the Lisheen mine and $332 million relates to Anglo American`s 74% interest in
Black Mountain Mining.
The sale of Anglo American Zinc follows Anglo American`s October 2009
announcement of its strategy to focus on its portfolio of world class, large
scale, long life mining assets in those commodities where Anglo American holds
advantaged positions.
Cynthia Carroll, Chief Executive of Anglo American, said: "The successful sale
of Anglo American Zinc for $1,338 million following our announcement in October
last year is testament to the high quality of the business and its management
team. This agreement represents an important milestone in our strategy to focus
on our core commodity businesses and on the delivery of our exciting near term
growth from our $17 billion of approved projects. I am grateful for the support
received from Anglo American Zinc`s management and employees and I believe they
will benefit under the ownership, and with the development plans, of Vedanta."
Anil Agarwal, Chairman of Vedanta, said: "We are delighted to have reached this
agreement with Anglo American to acquire their portfolio of zinc assets. These
high quality assets complement Vedanta`s existing portfolio, creating the
largest zinc and lead producer in the world. We intend to rapidly develop
Gamsberg, one of the largest high quality zinc projects in the world, leveraging
our world-class large project development expertise. Vedanta has consistently
demonstrated a track record of successfully integrating and investing in its
acquisitions, and we look forward to working with the high quality management
team and employees of Anglo American Zinc, Exxaro and the local communities
towards growing the business. We are committed, as we are throughout all of our
operations world wide, to maintaining the highest health and safety standards,
and to the sustainable development of these operations."
The transaction is subject to customary regulatory approvals as well as
competition clearance in the relevant jurisdictions. In addition, Exxaro
Resources Limited ("Exxaro"), Anglo American`s black economic empowerment
partner in Black Mountain Mining, holds a 26% interest in the company and has a
pre-emptive right to match Vedanta`s offer in respect of this asset. Completion
of the transaction is expected to be in stages, with separate completion dates
for Skorpion, Lisheen and Black Mountain Mining.
For further information, please contact:
United Kingdom
James Wyatt-Tilby, Media Relations
Tel: +44 (0)20 7968 8759
Caroline Metcalfe, Investor Relations
Tel: +44 (0)20 7968 2192
Leisha Wemyss, Investor Relations
Tel : +44 (0)20 7968 8607
South Africa
Pranill Ramchander, Media Relations
Tel: +27 (0)11 638 2592
Notes to Editors:
Anglo American Zinc produced 350,000 tonnes of contained zinc in 2009,
generating gross revenues of $717 million and EBITDA of $227 million (1). The
business has, in aggregate at its operating mines, Ore Reserves of 1.9 Mt of
contained zinc and Mineral Resources of 1.1 Mt of contained zinc (in addition
to Ore Reserves). In addition, the Gamsberg project has Mineral Resources of
12.9 Mt of contained zinc.
All figures presented on a 100% Copper Lead Zinc
basis
2009 Production in Black 2 49 28
ktpa Mountain
Lisheen 0 19 172
Skorpion 0 0 150
Total 2 68 350
2008 2009
Revenue in US$m Black 152 180
Mountain
Lisheen 285 301
Skorpion 279 236
Total 716 717
2008 2009
EBITDA in US$m Black 32 55
Mountain
Lisheen 39 72
Skorpion 132 100
Total 203 227
Note (1) On a 100% basis
The consideration agreed with Vedanta is based on effective economic ownership,
including profits and cash flows, passing to Vedanta as of 1 January 2010.
Anglo American plc is one of the world`s largest mining companies, is
headquartered in the UK and listed on the London and Johannesburg stock
exchanges. Its portfolio of mining businesses spans precious metals and minerals
- in which it is a global leader in both platinum and diamonds; base metals -
copper and nickel; and bulk commodities - iron ore, metallurgical coal and
thermal coal. Anglo American is committed to the highest standards of safety and
responsibility across all its businesses and geographies and to making a
sustainable difference in the development of the communities around its
operations. The company`s mining operations and extensive pipeline of growth
projects are located in southern Africa, South America, Australia, North America
and Asia.
www.angloamerican.co.uk
Vedanta Resources Plc is a London listed FTSE 100 diversified metals and mining
company. The group produces aluminium, copper, zinc, lead, iron ore and
commercial energy. Vedanta has operations in India, Zambia and Australia and a
strong organic growth pipeline of projects. With 30,000 employees globally,
Vedanta places strong emphasis on partnering with all its stakeholders based on
the core values of entrepreneurship, excellence, trust, inclusiveness and
growth.
www.vedantaresources.com
10 May 2010
Sponsor: UBS South Africa (Pty) Ltd
Date: 10/05/2010 08:01:01 Produced by the JSE SENS Department.
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