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Anglo Coal Signs Joint Venture Agreement in China
Anglo American plc
(Incorporated in the United Kingdom)
Registration number: 3564138
Share code: AGL
ISIN: GB0004901517
(the `Company`)
Anglo Coal Signs Joint Venture Agreement in China
Anglo American plc announces that Anglo Coal has signed a co-operative
exploration contract with Shaanxi Coalfield Geology Bureau (SCGB) in Shaanxi
Province. This is the first contract of its type in Shaanxi between a foreign
investor and the Shaanxi coal bureau for exploration.
The one billion metric ton high energy thermal coal resource is contained within
the Xiwan lease and is situated in the Yushen Coalfield, part of the Ordos Coal
basin, one of the largest coal basins in the world. It is a multi-seam coal
deposit potentially mineable by truck and shovel open cut methods. The coal
will be mainly used in Shaanxi Province and is suitable for chemical conversion
and power generation.
The exploration contract has been awarded to Team 185 (part of the SCGB) which
will employ around 150 people for the drilling of approximately 9,000 metres, 15
km of magnetometer lines and 2 km of seismics between now and mid-November. The
cost to Anglo Coal will be close to US$500,000 for its 50% share in this
programme. At the completion of the field work, a pre-feasibility study will be
undertaken to ascertain the robustness of the project, which on a preliminary
assessment by Anglo Coal could support a mine producing 10 to 15 million metric
ton per annum.
A six-man management committee, representing both parties, will manage the
project. Anglo Coal has appointed a local Chinese field representative.
Background information
Shaanxi Coalfield Geology Bureau (SCGB)
The SCGB was formed under the Ministry of Coal Industry and is recognized as the
discoverer of the extensive coal resources within the Ordos Basin. It is now
part of the Shaanxi Government under the management of Director General Wang
Shuangming with a staff of 4000 providing comprehensive coal exploration
services. It is the parent of Team 185.
Shaanxi Province and the Xiwan Lease
Shaanxi has a population of approximately 37 million people mostly located in
remote rural townships. The capital, Xi`an, with an urban population of 4
million, is 900 km south west of Beijing and was the ancient capital of China
through to the Tang dynasty (10th Century) and is recognized as the birth place
of China. Xi`an is famous for the Terracotta Warriors, a World heritage site
and one of China`s premier tourist attractions.
Shaanxi is rapidly becoming one of the major coal producing provinces of China
and has additional mineral potential. It is part of the Chinese Central
Government`s Western Development plan that encourages foreign investment in
these regions.
The Xiwan lease is located in the north of Shaanxi Province, approximately 550
km south west of Beijing
Anglo Coal is one of the world`s largest private sector coal producers and
exporters, producing thermal and metallurgical coals. It has mining operations
in South Africa, Australia, Colombia, Venezuela, and an office in China.
Date: 2 August 2004
Distributed by: Anglo American
Corporate Communication
Contact: Marion Dixon
Tel: +27 11 638 3001
Email: madixon@angloamerican.co.za
Anne Dunn
Tel: +27 11 638 4730
Email: adunn@angloamerican.co.za
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