PALABORA - CLOSURE OF THE ZIRCONIUM BASIC SULPHATE 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 ZIRCONIUM BASIC SULPHATE (`ZBS`) PLANT
Shareholders are referred to the announcement published on SENS on 30 April 2004
relating to the closure of the ZBS plant and to the commentary in Palabora`s
unaudited interim report which advised that, subsequent to the Boards` decision
to close the ZBS plant, the Board had received a lease and purchase proposal
from Southern Ionics Incorporated (SII) of Mississippi in the USA, which was
approved by the Board on 8 June 2004. SII undertook to notify Palabora, on or
before 30 September 2005, of its intention to purchase the plant. At that stage,
no contractual commitment had been incurred by either party.
Shareholders are advised that SII has advised the Board that it will not go
through with the lease of the facility and the recommissioning of the ZBS plant
due to the financial risks involved having regard to the uncertainty of zircon
sand estimates and the projected operating costs of the facility which are not
competitive with the existing and projected cost of material coming out of
China.
The Board is in the process of considering other proposals received from
interested third parties and shareholders will be advised in due course
regarding the Board`s decision.
Phalaborwa
31 August 2004
Sponsor:
Barnard Jacobs Mellet Corporate Finance (Pty) Ltd
Date: 31/08/2004 08:00:04 AM
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