Anglo American Platinum Corporation Limited - Join
Anglo American Platinum Corporation Limited
(Incorporated in the Republic of South Africa)
Registration No. 1946/022452/06
("Anglo Platinum")
and
LONMIN PLATINUM
(comprising Western Platinum Limited
Registration Number 1963/003589/06
and Eastern Platinum Limited
Registration Number 1987/070294/06)
("Lonplats")
Joint announcement - Pandora joint venture
Anglo Platinum and Lonmin Platinum wish to announce that they have agreed in
principle (and subject to certain conditions outlined further) to establish a
Joint Venture (the "Pandora Joint Venture") to exploit the UG2 Reef in and upon
portions of the farms Hartebeestpoort B 410 J.Q., Roodekopjes 417 J.Q. and
Uitvalgrond 416 J.Q. ("the Mineral Rights Area"), near Brits in the North-West
Province of South Africa.
Anglo Platinum, through its wholly-owned subsidiary Rustenburg Platinum Mines
Limited ("RPM"), owns or holds the right to mine for platinum group metals in
and upon portions of the Mineral Rights Area and has certain rights to surface.
Lonplats, through its Eastern Platinum Mine ("EPM") carries out UG2 mining
operations on properties immediately adjacent to the Mineral Rights Area.
Anglo Platinum and Lonplats will co-operate as equal participants in the Joint
Venture and intend to utilise the existing infrastructure at EPM to gain quick
access to the Mineral Rights Area adjacent to EPM. Additional infrastructure,
including a new decline shaft, a new 200 000 tons per month concentrator, and
the expansion of the EPM concentrator from 200 000 tons per month to 320 000
tons per month, will allow the Pandora Mine to attain full production of 3,6
million tons per annum some 6 years after commencement. The Pandora Mine will
have mineable UG2 reserves and resources in excess of 130 million tons and at
the expected production rate of 230 000 ozs of refined platinum and 110 000 ozs
of refined palladium per annum, will have an expected life of 30 years. Each
party will be responsible for further downstream smelting, refining and
marketing of its share of the concentrate received from the Pandora Mine.
Lonplats will be appointed as manager of the Joint Venture whose affairs will
be administered by an Executive Committee comprising an equal number of
representatives from RPM and Lonplats.
It is intended that the Pandora Joint Venture will commence on 1 July 2001, and
the parties will incorporate a Black Economic Empowerment partner who will, in
due course, be invited to acquire a share in the Joint Venture.
The initial capital expenditure of the Joint Venture has been estimated at
R1,42 billion and will be funded by both parties from internal sources. In
order to make good the difference in value of assets contributed by each party
to the Joint Venture, 60% of the capital will be contributed by Lonplats and
40% by Anglo Platinum. Thereafter, capital will be contributed equally by both
parties.
The Joint Venture offers significant synergies to both Anglo Platinum and
Lonplats, allowing both parties to increase platinum group metals output in a
capital-efficient manner.
The conclusion of the Joint Venture Agreement will be subject to certain
conditions including:
- the obtaining of the necessary regulatory and statutory consents and
authorisations;
- the approval by the parties of final technical, financial and operational
details and a budget by 1 July 2001;
- the approval of the Boards of Directors of Anglo Platinum and Lonplats.
JOHANNESBURG
6 APRIL 2001
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