Kumba Resources Board Approves Agreement For Invol
Project In Inner Mongolia, China
Kumba Resources Limited
JSE code: KMB
ISIN: ZAE000034310
2003-02-28
KUMBA RESOURCES BOARD APPROVES AGREEMENT FOR INVOLVEMENT IN ZINC REFINERY
PROJECT IN INNER MONGOLIA, CHINA
The Board of metals and mining company Kumba Resources ["Kumba"] has approved an
equity joint venture (EJV) with Chifeng Hongye Zinc Smelting Company Limited and
Chifeng Baiyinnuoer Lead Zinc Mine Company Limited, to expand and jointly
operate the Hongye Zinc Refinery at Chifeng and the Lindong Roaster at Lindong,
People`s Republic of China.
The projects are located some 350km and 700km respectively north-east of Beijing
in the Inner Mongolia Autonomous Region.
An agreement was signed on 29 August 2002 to expand the current 24 000 tpa
operation to a 50 000 tpa zinc slab producer in which Kumba will hold a 60%
stake.
The agreement was subject to a number of pre-conditions, which were satisfied
during January 2003 and facilitated the approval by the Kumba Board. A
feasibility study was completed and construction of the expansion project has
started and is expected to be completed towards the end of 2003.
Operations will be managed through the EJV company Chifeng Kumba Hongye Zinc
Corporation Limited. Hot commissioning and ramp-up to full capacity will start
in January 2004 with full capacity expected by July 2004. Total project capital
will be RMB220 million and Kumba`s equity participation RMB92 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 key outputs of Kumba`s Base Metals strategic
business unit.
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 of its iron ore sales to China to the present level
exceeding 10 million tons per annum.
Kumba Base Metals also exports lead concentrates from its Namibian-based Rosh
Pinah Mine to China. The Hongye Project offers a sound opportunity for
operational involvement in China and could serve as the platform from which
Kumba can consider further investments in this important, dynamic business
environment.
ends
More information on Kumba Resources may be sourced on the company`s website:
www.kumbaresouces.com
For media enquiries please contact:
Pat Mdoda
General Manager: Corporate Affairs
Telephone: (012) 307 4332, 082 609 1204
Email: pat.mdoda@kumbaresources.com
For investor relations enquiries please contact:
Trevor Arran
General Manager: Investor Relations
Telephone: (012) 307 3292, 082 609 1444
Email: trevor.arran@kumbaresources.com
Date: 28/02/2003 03:17:00 PM Supplied by www.sharenet.co.za
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