| Thu 11 Jul 2002, 0:00 | | Joint announcement by America Mineral Fields Inc. |
|
ANGLO AMERICAN PLC
JSE Code: AGL
ISIN Code: GB0004901517
Joint announcement by America Mineral Fields Inc. and Anglo American plc
Restructuring of Shareholding in Kolwezi Cobalt-Copper Tailings Project
in the Democratic Republic of Congo
America Mineral Fields Inc. ("AMZ") and Anglo American plc ("Anglo
American") today announce that the shareholding of their joint venture
company Congo Mineral Developments Limited ("CMD"), the entity which
holds their interests in the Kolwezi cobalt-copper tailings project in
the Democratic Republic of Congo (DRC), has been restructured.
Key aspects of the transaction:
* Anglo Base Metals (a division of Anglo American) has decided to divest
its 50% stake in CMD as part of its global strategy to restructure its
base metal portfolio and to focus on major interests in larger scale
projects.
* AMZ and Anglo American accordingly have reached agreement for the
purchase and sale of all of Anglo American's shareholding in CMD. The
consideration payable by AMZ to Anglo American, totalling approximately
US$3.5m, substantially reflects the terms of the original joint venture
agreement. As a result of the transaction, AMZ now holds a 100% interest
in CMD.
* AMZ is focused on projects in Central Africa, and in particular in the
DRC. For AMZ, the Kolwezi Tailings Project remains a core asset of the
company, and consequently AMZ welcomes the opportunity that Anglo Base
Metals' changed strategy provides to expand its participation in this
attractive investment.
* The terms and conditions also include a cross-licensing agreement,
which will, inter alia, provide CMD with technical know-how to implement
the Project.
* CMD believes that it is well positioned to progress the Project
further in a timely manner. No adverse consequences to the rights held
by CMD are foreseen as a result of this transaction.
11th July 2002
This News Release contains forward looking statements within the meaning
of the United States Private Securities Litigation Reform Act of 1995
concerning the AMZ plans for the Kolwezi Tailings Project and the
expected results of this work. Information concerning the plans of the
AMZ and the measured and inferred reserves at the Kolwezi Tailings
Project may also be deemed to be forward looking statements, as they
constitute a prediction of what would be recovered when a project is
actually mined. These forward looking statements are subject to a
variety of risks and uncertainties which could cause actual events or
results to differ materially from those reflected in the forward looking
statements, including, without limitation, risks and uncertainties
involved in the interpretation of drilling results, risks and
uncertainties relating to the geology, grade and continuity of mineral
deposits, recovery rates, accidents, equipment breakdowns, labour
disputes or the inherent uncertainty of production and cost estimates
and the potential for unexpected costs and expenses and other risks and
uncertainties, including those described in the AMZ periodic filings
with the British Columbia Securities Commission, the Alberta Securities
Commission, the Ontario Securities Commission and the U.S. Securities
Exchange Commission.
ENQUIRIES
Anglo American plc
London
Nick von Schirnding - Investor Affairs Tel: + 44 20 7698 8540
Edward Bickham - Media Relations Tel: + 44 20 7698 8547
Johannesburg
Marion Dixon - Media Relations Tel: +27 11 638 3001
America Mineral Fields Inc.
Tim Read Tel: +44 207 355 3552
President and CEO
Archie Berens/Michael Spriggs Tel: +44 20 7457 2020
(College Hill and Associates)
Notes to Editors:
The Kolwezi Tailings Project
The Kolwezi Tailings Project comprises a tailings resource of 112.8
million tonnes at an average grade of 1.49% copper and 0.32% cobalt (1).
Substantial work to progress the Project has been carried out by CMD,
including proving the reserves, successfully operating a fully
integrated pilot plant and developing a process flowsheet. When
commissioned, the Kolwezi Tailings Project is expected to be one of the
world's lowest cost cobalt producers, even prior to credits from copper
production.
America Mineral Fields Inc.
America Mineral Fields Inc. ("AMZ") is a Canadian Mining Company, listed
on the Toronto Stock Exchange. Its principal focus is on the development
of its mineral assets in Central Africa, namely the Kolwezi Tailings
Project and the Kipushi zinc mine in the DRC and the Cuango River
Diamond project in Angola. AMZ's major shareholders are Jean Raymond
Boulle (30%) and Umicore (11%). AMZ is also in discussions with a number
of additional financial shareholders to invest in CMD and or AMZ and has
engaged investment bank CIBC World Markets plc to assist with this
process.
(www.am-min.com)
Anglo American plc
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)
(1) The resource estimate was calculated by MineNet and audited by Dr.
Isobel Clark of Geostokos Limited. Some 97% of these resources are in
the measured category, the balance being in the indicated resource
category. This resource has been estimated in accordance with the
Canadian Institute of Mining and Metallurgy guidelines. Dr. Isobel
Clark has also conformed these results to the JORC (Joint Ore Reserves
Committee) reporting code, with no changes.
Date: 11/07/2002 08:00:17 AM Produced by the JSE SENS Department
