| Fri 17 Jan 2003, 9:47 | | ANGLOVAAL MINING LIMITED/ IMPALA PLATINUM HOLDINGS |
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Anglovaal Mining Limited Impala Platinum Holdings Limited
Reg. No. 1933/004580/06 Reg. No 1957/001979/06
(Registered in the Republic (Registered in the Republic
of South Africa) of South Africa)
(Share Code: AIN) (Share Code: IMP)
(ISIN: ZAE 000017141) (ISIN: ZAE 000003554)
TISO CAPITAL (Pty) Limited
Reg. No. 99/10875/07
CONSORTIUM ACQUIRES RIGHTS TO 25% STAKE IN TWO RIVERS PLATINUM
Two Rivers Platinum (Pty) Limited ("Two Rivers") is pleased to announce that it
has signed a memorandum of understanding with a new partner consortium, to be
managed by TISO Capital (Pty) Limited ("TISO"), to acquire up to 25 percent of
Two Rivers.
Shareholders within the TISO consortium comprise: TISO; Safika Investments; Aka
Resources; Siyanda Resources, which represents a large number of black mining
professionals; and a trust to be formed for the benefit of the community
surrounding the new Two Rivers mine.
Commenting on the joint venture, the Minister of Minerals and Energy, Phumzile
Mlambo-Ngcuka said: "This joint venture signifies real empowerment in that it is
a broader sector of the community that will benefit through the creation of
permanent and contract jobs. The deal responds to the call by government that
mining should benefit broader communities and be an engine of socio-economic
development.
"The Minerals and Resource Development Act, July 2002 stipulates that mineral
resources are the common heritage of all South Africans and collectively belong
to all the people of South Africa; that the State must consequently ensure that
benefits emanating from the exploration of our mineral resources accrue to all
citizens; that government redress the results of the past racial discrimination
and ensure that historically disadvantaged persons participate meaningfully in
the mining industry.
"Government therefore commends companies like Anglovaal Mining Limited ("Avmin")
and Impala Platinum Holdings Limited ("Implats") for being such keen players in
empowering previously disadvantaged persons."
Avmin and Implats recently formed Two Rivers to manage and operate the new mine
located in the eastern limb of the Bushveld complex, near the town of Lydenburg.
"Avmin and Implats are delighted to be in partnership with the Tiso consortium,
which brings a combination of strong commercial leadership and active
participation through the collective capabilities of the consortium" said Avmin
Chairman Rick Menell.
"Nearly 1 000 new permanent and contract jobs will be created by the mine with
further job creation prospects possible in supportive industries in the broader
community," added Menell.
Two Rivers has appointed Avmin as manager to conduct future developmental and
operating activities.
"The advanced feasibility study on a new mine suggest the sinking of a decline
shaft is the best option to access the ore body and that mechanised mining would
allow the mine to attain full production within two years after the sinking of a
shaft. A concentrator plant would be erected on site and Impala Refining
Services (IRS), a wholly owned subsidiary of Implats, will purchase the
concentrate of smelting and refining and will conduct the PGM marketing," Rick
Menell noted.
The base metal in concentrate will be toll-refined by IRS and the marketing
conducted by Avmin.
Implats CEO, Keith Rumble, said that the deal forms a part of Implats` long-term
empowerment strategy. "An important part of the way we work at Implats is to
form partnerships and joint ventures to turn to account mineral reserves to the
benefit of shareholders, employees and communities. But the process of
transformation must not and will not be isolated to boardrooms through equity
deals. Only once we have succeeded in transforming the company at all levels can
we say that we are succeeding in empowerment."
The Two Rivers and TISO consortium memorandum of understanding is currently
being documented into a shareholders agreement, which will ultimately result in
Avmin holding 41,25 percent of the new venture, with Implats holding 33,5
percent and the TISO consortium 25 percent. Avmin and Implats will combine their
interest into a new holding structure, which will hold 75 percent of the project
and be managed by Avmin. The TISO consortium will hold the remaining 25 percent.
On behalf of the consortium, TISO Deputy Chairman, Nkululeko Sowazi, said: "Our
consortium looks forward to working with Avmin and Implats in developing this
project and anticipates with enthusiasm the prospect of further entrenching
black participation the platinum sector from the perspective of ownership,
management, community development and procurement.
The conclusion of the agreements pertaining to this new partnership will be
subject to certain conditions, including:
* the conclusion and acceptance of a shareholders agreement;
* the approval of the Board of Directors of Two Rivers; and
* obtaining the necessary regulatory and statutory approvals, including a mining
licence.
Johannesburg
17 January 2003
Issued by: Sponsor to Avmin and Impala
Deutsche Securities (SA)(Pty) Limited
Date: 17/01/2003 09:42:16 AM Produced by the JSE SENS Department
