| Mon 1 Nov 2010, 8:00 | | LAF - XSTRATA contracts Lonrho to establish Agri Processing and Farming |
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LAF
LOLAF
LAF - XSTRATA contracts Lonrho to establish Agri Processing and Farming
Operations at its Thorncliff Alloys Mine
LONRHO PLC
(Formerly Lonrho Africa Plc)
(Incorporated and registered in England and Wales)
(Registration number 2805337)
(Share code: LAF; ISIN number: GB0002568813)
("Lonrho" or the "Company")
XSTRATA CONTRACTS LONRHO TO ESTABLISH AGRI PROCESSING AND FARMING OPERATIONS AT
ITS THORNCLIFF ALLOYS MINE
Lonrho Plc (AIM : LONR) is pleased to announce that XSTRATA South Africa (pty)
Ltd has contracted Lonrho Projects Agri Business, a Lonrho Plc subsidiary, to
develop and operate a commercial farming and agri processing development for
XSTRATA`s Thorncliff Alloys mine within the Sekhukhune District, in the Limpopo
Province in South Africa.
The innovative project is part of Xstrata`s community enterprise development
programme established to provide sustainable economic growth and diversification
in the mining communities where Xstrata operates.
Under the agreement, Lonrho will work with local subsistence farmers to develop
a farming cooperative that will deliver the yield, volume and quality of
production necessary to establish a commercially viable agricultural business.
The agreement with Xstrata will provide the funding necessary for Lonrho to
design and develop the infrastructure, irrigation, farming and agri-processing
facilities necessary for the cooperative to be able to produce on a commercially
viable scale.
Through its existing agri-logisitics business and cold chain management services
Lonrho will provide access for the farming cooperative to the formal commercial
market. This is essential to ensure that the project can maximise prices for the
fruit and vegetables that it produces. The project is valued at 42 million Rand
( GBP 3.7m ), with an immediate 14.4 million Rand (GBP 1.3m ) first phase that
will include the establishment of a core anchor farm, Global GAP packhouse and
the training, mentoring and management of 300 Rural Community Outgrowers and is
scheduled to be completed before December 2011.
The investment from XSTRATA is part of their Social & Labour Plan (SLP) and is
aligned with the Comprehensive Rural Development Programme (CRDP) strategy as
launched by the State President, His Excellency Jacob Zuma and Minister Gugile
Nkwinti of Rural Development & Land Reform in April 2009.
David Lenigas, Executive Chairman of Lonrho commented:
`We are delighted to have been chosen by XSTRATA to develop this project. The
Lonrho Agriculture cold chain logistical capabilities to take production from
projects such as this and provide the essential access to market is a
fundamental necessity for these projects to be commercially viable. The
0pportunity to replicate this project across Southern Africa can have a
significant impact on rural agricultural communities and their sustainability.`
LONRHO ENQUIRIES
Lonrho Plc +44 (0)20 7016 5105
David Lenigas, Executive Chairman +44 (0)7881 825 378
Geoffrey White, Chief Executive Officer +44 (0)7717 307 308
David Armstrong, Finance Director +44 (0)7833 054 693
Pelham Bell Pottinger
Charles Vivian +44 (0) 20 7861 3126
+44 (0) 79 7729 7903
James MacFarlane +44 (0) 20 7861 3864
+44 (0) 7841 672 831
Beaumont Cornish Limited (Nomad)
Rosalind Hill Abrahams +44 (0) 20 7628 3396
Roland Cornish +44 (0) 20 7628 3396
Date: 01/11/2010 08:00:02 Produced by the JSE SENS Department.
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