| Fri 30 Aug 2002, 0:00 | | Anglo American - Anglo Coal Sells Kwazulu-natal R |
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Anglo American - Anglo Coal sells KwaZulu-Natal reserves to empowerment venture
Anglo American plc
("Anglo American")
ISIN code: GB0004901517
Issuer code: ANAAL
Alpha code: AGL
Anglo Coal, international coal producer and a division of Anglo American plc,
has announced the sale of its KwaZulu-Natal coal reserves - comprising an
estimated 104 million saleable tons - to Leeuw Mining and Exploration (Pty) Ltd
(LME), a black empowerment company.
JPI Leeuw and Associates, also a black empowerment company in the property
development sector, holds an 80% stake in LME while the management of LME hold
10%. Zimele, Anglo American`s business development and empowerment unit, takes a
minority investment of 10%. LME benefits from the technical assistance of ATD
(the technical services division of Anglo American) and Hatch Africa, an
engineering consulting firm. An independent management consultancy,
PricewaterhouseCoopers Corporate Finance (Pty) Ltd, and Zimele have overseen the
financial and commercial aspects of the new venture.
Commenting on the transaction, Anglo Coal chairman and CEO Tony Redman says,
"The sale of our KwaZulu-Natal reserves to LME is a significant step for both
the coal industry and the mining sector as a whole."
Willy Leeuw, managing director of LME, responds, "It is tremendously exciting
for LME as a small-scale mining firm to benefit from the support of an
international coal producer such as Anglo Coal as well as the guidance and
skills transfer from Zimele and our technical partners."
"In accordance with the principles of Sustainable Development," adds Leeuw, "the
venture is sensitive to the environmental issues associated with mining. LME
will ensure that all mining efforts will comply with national protocols in this
regard. Further to this, LME has a social responsibility programme directed at
the neighbouring communities."
Initial mining and development is currently planned to commence in the last
quarter of 2002. Vaalkrantz, an anthracite reserve and part of the Vryheid
coalfields, will be mined for its good quality anthracite, while the bituminous
coal reserve, Braakfontein (Klip River coalfield), shows potential as a multi-
product, opencast and underground mine.
The potential of the other reserves sold to LME, notably in the Vryheid, Utrecht
and Newcastle areas, are currently being assessed.
30 August 2002
Media queries:
Anglo Coal
Marion Dixon
Tel: 011 638 3001
Cell: 082 775 5520
Email: madixon@angloamerican.co.za
Zimele
Samantha Hunt
Tel: 011 849 7699
Cell: 082 452 2566
Email: frog_comm@iafrica.com
Note to editors
Anglo American Group companies have been at the forefront of measures to promote
black economic empowerment (BEE) and have spent some R10 billion in empowerment
transactions and more than R3 billion on procurement from black-owned business
and black business development.
Zimele was launched by Anglo American in 1989, as the then Small Business
Initiative, to facilitate economic empowerment in South Africa through investing
in existing enterprises or the establishment of new enterprises that are
commercially viable and sustainable. Zimele, derived from Zulu and Xhosa, means
`to be independent`.
The fund has been successful in integrating small businesses into the mainstream
economy and, by the end of 2001, more than 70 small businesses had been created.
Zimele is currently invested in 19 companies. Its investment in LME brings this
figure to 20. In 2001 the businesses had a combined turnover of R145 million and
1,234 employees.
Recent black empowerment initiatives by Anglo Coal:
In February 2001, Eyesizwe Coal celebrated the conclusion of an empowerment
transaction facilitated by Anglo Coal and Billiton Coal, for a consideration of
R360 million, creating the fourth largest coal producer in South Africa.
Earlier this week Anglo Coal announced that three Vryheid local community groups
acquired Anglo Coal Coronation Colliery land. Sustainable development is the
cornerstone of this deal in which the local communities took ownership of land
previously owned by Anglo Coal`s Vryheid Coronation Colliery (VCC) in KwaZulu-
Natal. At a signing ceremony, the Zamokuhle Residents Association Trust, the
Vrede Community Trust and the Mthethwa Tribal Authority Trust acquired more than
2000 hectares on three farms.
Date: 30/08/2002 02:30:00 PM Produced by the JSE SENS Department
