| Tue 2 Jul 2002, 0:00 | | ANGLO AMERICAN PLC - NEWS RELEASE |
|
ANGLO AMERICAN PLC
JSE Code: AGL
ISIN Code: GB0004901517
News Release
Anglo American plc (Anglo American) responds to reports in Zimbabwe
regarding National Foods
National Foods is an independently managed associated company and is not a
long-term component of the group's business in Zimbabwe. National Foods has
issued a statement refuting the allegations made in Zimbabwe (please see
below for a copy of such statement).
Anglo American remains a committed and responsible business partner in the
countries in which it operates and does not engage in activities such as
those referred to in statements publicised in recent press reports. As in
any country, the prime concern of investors is with economic stability.
Fundamental to such stability is policy certainty and respect for the rule
of law.
The Zimbabwe media have quoted certain incorrect facts in reporting this
story. It is well known, Mr Nicholas Oppenheimer does not own Anglo
American, nor is he the Chief Executive. Mr Oppenheimer is a non-executive
director of Anglo American plc. Oppenheimer family interests have a small
minority shareholding of 3,56% in Anglo American.
01 July 2002
End
Queries regarding operation of National Foods must be directed to the
company's MD, Mr Ian Kind: 09263 4 781182/9.
Anglo American enquiries:
Johannesburg
Michael Spicer
Tel: +27 11 638 3870
Marion Dixon
Tel: +27 11 638 3001
London
Edward Bickham
Mobile: +44 207 698 8547
Kate Aindow
Tel: +44 20 7698 8619
Note 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)
COPY OF STATEMENT RELEASED BY NATIONAL FOODS LIMITED
NATIONAL FOODS LIMITED
NOTICE TO THE PUBLIC - SHORTAGE OF SALT
Severe criticism has been levelled against National Foods in the past week
relating to allegations of the hoarding of prepacked fine salt. It is,
therefore, necessary to clarify the situation and the facts are set out
below:
Salt is not produced in Zimbabwe and all requirements are imported and paid
for in foreign currency.
National Foods is one of a number of importers of bulk fine salt into
Zimbabwe for use in the manufacturing sector and for domestic consumption.
The product is imported in 50 kg bags and part of it is repacked into
smaller packets suitable for the wholesale and retail market.
Large quantities of salt are imported regularly and held in stock to ensure
continuity of supply.
It takes up to four weeks from time of order through production and
distribution through our depot network to become available to the end
consumer.
On 11 October 2001, selling prices of 500g, 1kg and 2kg packets of salt were
fixed in the Government Gazette at September 2001 levels.
Foreign currency to pay for the salt imports has only been available at
current parallel market exchange rates as there is no currency available at
the official rate in the market.
The parallel market currency rate has deteriorated significantly over the
past two months and, therefore, the landed cost of salt has increased by
well over 100% in this period, to a level that is substantially higher than
the Gazetted selling price of the product.
Salt importers have been requesting adjustments to the Gazetted selling
price as far back as November 2001. However, this has not taken place and
the product has become completely unviable to import at current controlled
selling prices, resulting in severe losses being incurred.
At several meetings with the Ministry of Industry and International Trade
over the past few weeks, culminating in a letter of 26 June 2002 advising of
these problems, packers had been assured that the commodity was under review
for a price increase or, alternatively, that it would become a decontrolled
product. However, to date this matter has still not been finalised.
As a result of the huge losses being incurred on prepacked salt at the
controlled selling prices, it was no longer possible for the smaller packs
to be made available. The Company continued to sell 50kg bags of salt and
has continued to import until recently to ensure supply of the bulk material
into the country.
Last week the Company again urgently requested Ministry to assist in
speeding up the review of prices as prepacked salt was becoming scarce in
the market. The Company furnished Ministry at its request, on 26 June 2002,
with all of its stockholdings of salt held throughout the country. The
Company therefore refutes the media allegations that the salt stocks have
been withheld on a secretive basis.
In order to try and alleviate the shortages developing the Company has
converted some prepack stock back to the 50kg pack sizes for distribution to
the market.
The Company has had visitations by Government officials over the past few
days throughout its depot network and has been instructed to sell the
remaining balance of prepacked salt at existing controlled selling prices
which are far less than the landed cost of the raw material alone. This will
result in losses in excess of $23 million.
In order to assist with this sensitive shortage situation, we have complied
and have done all possible to distribute the balance of our prepacked salt
stock to the market. These stocks came into the country on the inducements
and assurances from the authorities that selling prices would be timeously
adjusted and National Foods had continued to import in good faith.
The Company has never and would not contemplate, destroying any product
which is suitable for human consumption.
At no time has National Foods entertained the idea of trying to create a
shortage by subverting the normal chain of supply and has always done its
best to play its role in the orderly supply of salt and other foodstuffs to
the market. The Company has been caught up in an unfortunate chain of
events beyond its control.
National Foods is anxiously awaiting guidance from the Ministry of Industry
and International Trade regarding price adjustments to prepacked salt or
alternatively the availability of foreign currency at official exchange
rates for further importations of bulk fine salt.
1 July 2002
Date: 02/07/2002 08:02:49 AM Produced by the SENS Department
