Kumba Resources Concludes Agreement For Zinc Refin
China
News Release
2002-08-29
Metals and mining company Kumba Resources Ltd [Kumba] is pleased to announce
that, through its Base Metals Strategic Business Unit (SBU), the company has
concluded a joint venture agreement with Chifeng Hongye Zinc Smelting Company
Limited and Baiyinnuoer Lead Zinc Mine Company Limited for the expansion and
joint operation of the Hongye Zinc Refinery at Chifeng and the Lindong Roaster
at Lindong. The refinery and smelter are situated some 350 km and 700 km
respectively north-east of Beijing in the Inner Mongolia Autonomous Region,
Peoples Republic of China.
Signed on 29 August 2002, the agreement provides for the expansion of the
current 24 000 tonnes per annum operation to a 50 000 tonnes per annum zinc slab
operation to be governed through an equity joint venture company in which Kumba
will hold a 60% stake. The agreement will be subject to a number of pre-
conditions, including successful completion of the already far-advanced
feasibility study, securing of project financing and regulatory approvals of the
Chinese and South African governments. It is envisaged that all outstanding
matters will be finalised towards the end of 2002, in which event construction
of the expansion project could commence early in 2003. Kumba`s total exposure to
the Hongye project will at this stage not exceed RMB140 million.
China has become the world`s most important market for base metals and the next
decade holds huge potential for further growth in consumption of commodities
such as zinc and copper, which are of importance to Kumba`s Base Metals SBU.
Kumba`s first operational involvement in China follows its 1994 investment of
USD10 million in the development of the iron ore terminal at Qingdao Port, which
facilitated the growth in its iron ore sales to China to the present level
exceeding 8 million tonnes per annum. Kumba`s Base Metals SBU also exports lead
concentrates to China from its Namibian-based Rosh Pinah Mine.
The Hongye Project offers a sound opportunity for operational involvement in
China and could serve as the platform from which Kumba considers further
investments in this important, dynamic business environment.
ends
Note
Kumba Resources Ltd, one of the largest South African-based mining companies
listed on the JSE Securities Exchange, is a focused metals and mining company
with a diverse commodity portfolio consisting of iron ore, heavy minerals, coal,
base metals and industrial minerals. www.kumbaresources.com
Contact:
Ernst Venter
General Manager, Kumba Base Metals
Cell: 083 609 1313
E-mail: ernst.venter@kumbaresources.com
Jaco Badenhorst
Business Development Manager Base Metals
Strategy & Business Development, Kumba Resources
Cell: 083 609 1322
e-mail: jaco.badenhorst@kumbaresources.com
Date: 29/08/2002 05:56:00 PM Produced by the JSE SENS Department
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