| Tue 29 Oct 2002, 15:30 | | Kumba Extends Agreement With Port Of Qingdao, Chin |
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Kumba Extends Agreement With Port Of Qingdao, China
Kumba Resources Limited
JSE code: KMB
ISIN Code: ZAE000034310
Telephone : + 27 (12) 307 4561
P.O. Box 9229
PRETORIA 0001
Telefax : + 27 (12) 307 4080
2002-10-29
KUMBA EXTENDS AGREEMENT WITH PORT OF QINGDAO, CHINA
Kumba Resources Limited (`Kumba`) has announced an extension to its agreement
with the Qingdao Port Authority for the handling and use of iron ore stockpile
facilities at Qianwan Port in the city of Qingdao in Northern China. The
agreement was signed in Pretoria this morning by Kumba Chief Executive Con
Fauconnier and a delegation from the Qingdao Port Authority - Mr Chang Dechuan,
Director, Mr Tian Guangwen, Deputy Director and Ms Yi Ping, Director of
Qingdao`s Foreign Economic Department.
In 1994 Kumba signed an agreement and invested US$ 10 million in the development
of iron ore stockpile handling facilities at the Port of Qianwan in the city of
Qingdao for an 8-year period. This enabled Kumba to secure its customer base in
Northern China, and to sell smaller volumes to steel mills in that region. Since
the agreement was signed, 9 million tonnes of iron ore were exported from
Saldanha Bay through the port facilities at Qianwan. Kumba currently accounts
for 10% of the total iron ore imports into China.
The extension to the agreement makes provision for a period of 10 years. The
target volume for the current financial year is 2,2 million tonnes and the
forecast is that this volume could increase to 4 million tonnes in the next few
years through the consolidation of the Chinese steel industry and Kumba`s long-
term customers increasing their off-take from Kumba.
Commenting on the agreement, Kumba chief executive Con Fauconnier said, "Kumba
was one of the first foreign companies to invest in China, and we`ve never
looked back. China has become the single most important destination for Kumba`s
iron ore exports. The extension of this agreement not only strengthens existing
ties with our business partners in China, but is key to Kumba`s business
development initiatives in this rapidly developing, strategic market."
Port Authority Director Chang Dechuan said that the agreement symbolised the
beginning of a new era in the relationship between Kumba and the Qingdao Port
Authority.
Following a previous visit in 1996 to Kumba`s iron ore handling facilities in
South Africa, he said, the Qingdao Port Authority installed similar facilities,
with excellent results.
The Port of Qingdao currently rates among the top 25 ports in the world in terms
of tonnage handling, and the intention is to increase throughput from 100
million tonnes of cargo in 2001 to 120 million tonnes this year, which will
secure its ranking among the top 14 ports in the world. The Port of Qingdao is
the second largest foreign trade port in mainland China.
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:
Matie von Wielligh
General Manager: Kumba Iron Ore
Tel 012 - 307 4913
Hennie van Staden
Manager: Logistics, Iron Ore
Tel 012 - 307 4919
Date: 29/10/2002 03:26:03 PM Produced by the JSE SENS Department
