| Thu 11 Apr 2002, 0:00 | | Anglo American Plc - News Release |
|
ISIN CODE : GB0004901517
ISSUER CODE : ANAAL
ALPHA CODE : AGL
ANGLO COAL AND MITSUI ANNOUNCE JOINT VENTURE PLANS
Anglo American plc ("Anglo American") is pleased to announce plans for joint
venture arrangements between its wholly owned subsidiary, Anglo Coal
Australia Pty Ltd ("Anglo Coal Australia") and Mitsui Coal Holdings Limited
("Mitsui Coal"), a subsidiary of Mitsui and Co. Ltd of Japan ("Mitsui") in
Brisbane today.
Total value of the combined transactions is US$310 million, with a net cash
payment of US$11 million to be made by Anglo Coal Australia to Mitsui.
The transactions include:
- the acquisition by Anglo Coal Australia of a 51% interest in the Moura
mine from Mitsui Coal;
- the divestment by Anglo Coal Australia to Mitsui Coal of a 49% interest
in the Theodore, Dawson and Taroom projects in Central Queensland, and a 30%
interest in its German Creek mine.
Each transaction is subject to the execution of relevant legal documentation
and to regulatory approvals and is not expected to be finalised until the
third quarter of 2002.
Anglo Coal Australia will manage all the mines and projects within the joint
ventures and is planning a smooth transition for the joint ventures,
including Moura.
"The proposed Anglo Coal/Mitsui joint ventures offer wide-ranging benefits
to the local, state and national communities, as well as to the joint
venture companies," a spokesperson for Anglo Coal Australia said today.
"They include the ability of the joint venture participants to fully develop
and link the Theodore project, which lies directly to the south and adjacent
to Moura," added the spokesperson.
Mitsui currently owns 45% of Moura and has exercised its pre-emptive rights
to acquire Coal and Allied Resources Limited's (CNARL) 55% share in Moura.
The key benefits of the joint ventures for Anglo Coal Australia, which
already has a relationship with Mitsui through their joint participation in
the Drayton coalmine in the New South Wales Hunter Valley, are:
- the marketing, infrastructure and operational synergies that Mitsui's
ownership in Moura offers Brisbane-based Anglo Coal Australia. These will be
vital in the development of Anglo Coal Australia's wholly owned and adjacent
Theodore Project;
- the development of Anglo Coal Australia's export metallurgical and thermal
coal business in Queensland;
- the development of Theodore in conjunction with Moura to unlock the
potential to develop a large coal-mining complex with future sales of approx
12 million tonnes per annum (Mtpa);
- the creation of significant employment, business and other benefits for
the region. Apart from opportunities associated with the construction and
development stages, once Theodore is established and fully operational,
approximately 280 people would be employed full time. Further jobs will be
created through contractors and local businesses and individuals supplying
services to Theodore.
- the staged development, that could follow over time as rail infrastructure
and markets are built, of the coal deposits to the south of Theodore,
involving Dawson (5Mtpa) and Taroom (5Mtpa), over which Anglo Coal holds
tenure.
For further information contact:
London:
Investor Relations
Nick von Schirnding +44 20 7698 8540
Media Relations
Kate Aindow +44 20 7698 8619
Johannesburg:
Investor Relations/Media Relations
Anne Dunn +27 11 638 4730 / +27 82 448 2684
Brisbane:
David Groves +61 7 3834 1379 / +61 417 356 773
Background Notes for 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).
