| Mon 29 Sep 2003, 11:32 | | Anglo American Plc - News Release |
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Anglo American Plc - News Release
Release Date: 29/09/2003 09:00:02 Code(s): AGL
Anglo American Plc - News Release
ANGLO AMERICAN PLC
JSE Code: AGL
ISIN Code: GB0004901517
(The "Company")
NEWS RELEASE
Anglo American announces US $150 million (R1,1 billion) upgrade at Mondi South
Africa"s Merebank paper mill
Anglo American plc ("Anglo American") will proceed with a US$150 million (R1,1
billion) conversion and expansion of paper machine 1 (PM1) at its Merebank paper
mill, in KwaZulu-Natal, South Africa. The announcement was made at a briefing in
Durban today attended by South Africa"s Trade and Industry Minister, Mr Alec
Erwin.
The project will include upgrading of most parts of the existing PM1 and thus
increase the capacity for competitive production of uncoated woodfree paper
grades. The production of magazine paper grades on PM1 will be discontinued.
Additional cutting capacity for the conversion of woodfree paper reels to A4
sheets will be installed as well. The mill"s annual production of uncoated
woodfree paper will increase from its current 274 000 tonnes to 524 000 tonnes
by 2006.
A further amount of US$44 million (R330 million) will be invested in an emission
reduction programme. As a first step, this will incorporate flue gas
desulphurisation of the existing coal fired boilers at a cost of a US$7million
(R50 million). Mondi will also be proceeding with the installation of a US$37
million (R280 million) multi-fuel boiler as a subsequent stage in an overall
plan which includes:
* converting an existing oil fired boiler to gas
* decommissioning one high-pressure oil fired boiler and replacing it with a
newlow-pressure gas fired boiler
* retiring the two remaining standby oil fired boilers following the
installation of the new multi-fuel boiler
The combined impact of the plan will result in a 66% reduction in SO2
emissions from the mill.
Andrew Thompson, Chairman and CEO of Mondi South Africa, says, "This significant
development at the Merebank mill is an important further step in Mondi"s
strategy to grow our business in value-added cut paper grades, based upon our
globally competitive eucalyptus forestry and pulp production base. Our markets
for cut paper have shown consistent growth for several years, although they are
subdued at present. This project will capitalise on our market position and
significantly increase exports, in the case of Europe and other important
markets, exclusively through the well-established international marketing
network of Mondi Europe"s Neusiedler.
The measures to reduce environmental emissions have been developed after
evaluation of all the options and in close consultation with relevant
stakeholders. They also take into consideration common practice in highly
developed countries, even in the most environmentally sensitive areas.
We much appreciate the constructive role played by Government to support both
this industrial investment and thus sustainable development in this province of
South Africa.
Ends
For further information:
Anglo American - London
Investor Relations Media Relations
Nick von Schirnding Kate Aindow
Tel: +44 207 698 8540 Tel: +44 207 698 8619
Anglo American - Johannesburg
Investor Relations Media Relations
Anne Dunn Marion Dixon
Tel: +27 11 638 4730 Tel: +27 11 638 3001
Background note
Mondi South Africa forms part of Anglo Paper and Packaging, a division of Anglo
American plc. Anglo Paper and Packaging contributed 21% to Anglo American"s
headline earnings for the six-month period to 30 June 2003, making it the second
largest contributor to the Anglo group. Headline earnings rose by 16% from $153
million to $178 million. Anglo Paper and Packaging"s operating profit was $357
million, 23% higher than for the first six months of 2002, with Mondi South
Africa contributing $97 million and Mondi Europe $260 million
Anglo American plc is one of the world"s largest mining and natural resource
groups. With its subsidiaries, joint ventures and associates, it is a global
leader in gold, platinum group metals and diamonds, with significant interests
in coal, base and ferrous metals, industrial minerals and forest products. The
group is geographically diverse, with operations and developments in Africa,
Europe, South and North America and Australia. (www.angloamerican.co.uk).
Johannesburg
29 September 2003
