PAM - Palabora - Rio Tinto and Anglo American announce their intention to divest
PAM
PAM
PAM - Palabora - Rio Tinto and Anglo American announce their intention to divest
their shareholding in Palabora and Cautionary Announcement
PALABORA MINING COMPANY LIMITED
(Incorporated in the Republic of South Africa)
Registration number - 1956/002134/06
JSE Code: PAM ISIN: ZAE000005245
("Palabora" or "the Company")
RIO TINTO AND ANGLO AMERICAN ANNOUNCE THEIR INTENTION TO DIVEST THEIR
SHAREHOLDING IN PALABORA AND CAUTIONARY ANNOUNCEMENT
The Board of Palabora Mining Company Limited ("PMC") (the "Board") has been
informed by the Rio Tinto Group ("Rio Tinto") and Anglo American plc ("Anglo
American") of their intention to divest their respective shareholdings in PMC.
The effective interests of Rio Tinto and Anglo American in PMC are 57.7% and
16.8%, respectively.
Rio Tinto has initiated a commercial process to sell its shareholding and Anglo
American will participate in that process.
PMC`s principal asset is a mine in South Africa which produces copper and
magnetite as joint products. It also owns a vermiculite mine. Studies are
currently underway to extend the life of the copper operation from 2016 to 2030,
to expand the export magnetite business and to develop domestic magnetite
supplies for further processing for iron production. The copper operation is
not of a scale to suit Rio Tinto or Anglo American`s investment criteria. PMC
owns a magnetite stockpile and the future value creation at PMC is likely to
involve the on-site processing and beneficiation of magnetite, an opportunity
that Rio Tinto and Anglo American believe will be best developed under different
ownership.
Any offer for all of Rio Tinto`s effective shareholding in PMC or for all of Rio
Tinto and Anglo American`s effective shareholding in PMC would be an Affected
Transaction for purposes of the takeover provisions of the Companies Act, 2008
and, in terms of the mandatory offer provisions, a prospective purchaser would
need to extend its offer to all shareholders of PMC on the same terms.
Accordingly, PMC shareholders are advised to exercise caution when dealing in
the Company`s securities.
Phalaborwa
5 September 2011
Sponsor: One Capital
Date: 05/09/2011 07:45:01 Produced by the JSE SENS Department.
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