Palabora Mining Company Limited - Closure Of The ZBS Plant
PALABORA MINING COMPANY LIMITED
(Incorporated in the Republic of South Africa)
Registration number - 1956/002134/06
Share code: PAM; ARC ISIN: ZAE000005245
("Palabora" or "the Company")
CLOSURE OF THE ZBS PLANT
The Board of Directors of Palabora decided, at its meeting held on 22 April
2004, that the ZBS Operations are to be closed.
The ZBS Operation has been problematic from its conception and, after spending
much time and money attempting to rectify a difficult situation, the Board has
decided that the Company can no longer afford to spend the R2 million per month
on an operation, which is not producing any revenue.
The Company will immediately commence a consultation process with the affected
employees and, where there are union members, with their unions, as required by
labour legislation. Where suitable vacancies exist in other parts of the
business, ZBS employees will be eligible to apply for these roles.
The cost of maintaining the operation during the negotiations to sell the plant,
coupled with the ongoing environmental responsibility of a plant located within
the Palabora site and the uncertainty of the ZBS market were considered too
great a risk to continue negotiations to sell the operation as a going concern.
This decision will enable management and staff of Palabora to concentrate on the
core business of mining and processing copper and vermiculite.
Phalaborwa
30 April 2004
Sponsor:
Barnard Jacobs Mellet Corporate Finance (Pty) Limited
Date: 30/04/2004 02:00:03 PM Produced by the JSE SENS Department
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
