The York Timber Organisation Limited
(Incorporated in the Republic of South Africa)
(Registration number 1916/004890/06)
Share code YRK ISIN ZAE000008108
("Yorkcor" or "the company")
Further Cautionary Announcement
Shareholders are referred to Yorkcor's further cautionary announcement dated
11 February 2002 regarding the termination of York's `evergreen' supply
contract for sawlogs to the group's York Lumber sawmill near Bushbuckridge.
The contract expires in five years' time, that is, on 31 December 2006.
Negotiations for the quantification and payment of compensation in terms of
the contract continue. The contract stipulates that an arbitrator will
determine the amount of compensation by 31 December 2002 if consensus cannot
be reached before 30 June 2002. The government admits it is obliged to pay
compensation and has appointed two experts to facilitate a negotiated
quantification of Yorkcor's claim. Discussions are currently underway to
agree to appropriate procedures.
The application for the committal of the Minister and the Director-General
of the Department of Water Affairs and Forestry for contempt of court is
still pending. The main thrust of the action is to activate a remedy against
the continuing omissions or failures to take the necessary steps to honour a
series of several long outstanding Orders of the High Court and a judgment
by the Supreme Court of Appeal in December 2000.
An Order of Court in 1997 directed DWAF to comply with Yorkcor's evergreen
contract, `by ensuring the plantations shall always be diligently and
exclusively devoted to softwood afforestation.' It was also directed to
make unconditional quantified offers of `the entire volume which will be
available from normal silvicultural operations' in successive periods of
five years.
The Government has tendered two offers of log supply, the first (until 2006)
on 25 January 2002 and the second (until 2004) on 22 February 2002. The
offers, purportedly in terms of the evergreen contract, are for the supply
of a minimum volume of sawlogs. Yorkcor regards both offers as defective in
a number of material respects and consequently in breach of the contract.
Shareholders are advised to continue exercising caution in dealing their
shares until a further announcement is made.
PRETORIA
3 April 2002
SPONSOR
SASFIN BANK LIMITED
(Registration number 1951/002280/06)
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