| Fri 1 Feb 2002, 0:00 | | Anglo American Plc - Announcement |
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ANGLO AMERICAN PLC
JSE Code: AGL
ISIN Code: GB0004901517
News Release
1 February 2002
ANGLO COAL FURTHER CONSOLIDATES ITS POSITION TO MEET GLOBAL COAL DEMAND
Anglo American plc announces that a consortium comprising (in equal parts)
subsidiaries of Anglo American plc, BHP Billiton plc and Glencore
International AG (the Consortium) has signed an agreement with Exxon Mobil
Corporation for the purchase of all the ownership interests in International
Colombia Resources Corporation LLC (Intercor).
Intercor has a 50% interest in, and is the operator of, the Cerrejon Zona
Norte coal complex (CZN) in Colombia. The net asset value of Intercor is
US$366 million. The other 50% interest in CZN was acquired by the
Consortium from the Colombian Government in November 2000. Following
completion, CZN will be 100% owned and operated by the Consortium.
CZN is Colombia's largest producer and exporter of steam coal and comprises
a surface coal mine, currently producing approximately 19 million tonnes per
annum of high quality thermal coal for export to international markets, a
150 kilometre railway line and a port.
Subject to the satisfaction of certain conditions, completion is expected to
take place within a month. The individual members of the Consortium will
each fund their pro-rata share of the purchase consideration.
Over the past five years, Anglo Coal has undertaken an international
diversification, adding significant interests in Australia, Colombia and
Venezuela to its strong position in South Africa. Today, Anglo Coal is the
4th largest private sector coal producer in the world.
Tony Redman, Chairman and CEO of Anglo Coal said, "Anglo Coal's broadening
geographic supply base is well positioned to meet the demands of global coal
markets. The group is now in a position to concentrate on optimising
operations and exploring brownfields expansions to current operations."
In addition to the investment in CZN, Anglo American plc, BHP Billiton plc
and Glencore International AG each have a 33.3% interest in Carbones del
Cerrejon (CdelC), which is located in the Guajira Department of northern
Colombia and is contiguous with CZN. Significant operational synergies have
been identified that can be released through combining the two operations.
CdelC and CZN are export-focused mines producing high quality, thermal coal.
The combined current production is 22mtpa of which Anglo Coal's attributable
share will increase from 4.2mtpa to 7.3mtpa. Opportunities exist to expand
the combined operation and further reduce unit operating costs.
Proven reserves of CZN and CdelC total 400 million tonnes, with additional
probable reserves of 550 million tonnes. The total resources, including
mineable reserves, exceed 2.5 billion tonnes.
For further information:
Anglo American - London
Investor Relations Media Relations
Nick von Schirnding Kate Aindow
Tel: +44 20 7698 8540 Tel: +44 20 7698 8619
Anglo American - Johannesburg
Investor Relations Media Relations
Anne Dunn Marion Dixon
Tel: +27 11 638 4730 Tel: +27 11 638 3001
Mobile: +27 82 448 2684 Mobile: +27 82 775 5520
Notes to Editors:
Anglo American plc is one of the world's largest mining and natural resource
groups. With its subsidiaries, joint ventures and associates, it is a global
leader in gold, platinum group metals and diamonds, with significant
interests in coal, base and ferrous metals, industrial minerals and forest
products. The group is geographically diverse, with operations in Africa,
Europe, South and North America and Australia. (www.angloamerican.co.uk)
