KUMBA - DISPUTE RELATING TO HOPE DOWNS IRON ORE PROJECT IN AUSTRALIA
KUMBA RESOURCES LIMITED
Incorporated in the Republic of South Africa
(Registration Number: 2000/011076/06)
Share Code: KMB
ISIN Number: ZAE000034310
(`Kumba`)
DISPUTE RELATING TO HOPE DOWNS IRON ORE PROJECT IN AUSTRALIA
Shareholders are advised that the Board of Directors of Kumba, with the support
of its controlling shareholder, Anglo American plc, has approved its investment
in and the development of the Hope Downs Iron Ore Project (the `Hope Downs
Project`). Shareholders of Kumba should, however, be aware that Downs Holding
BV (`Downs Holding`), a wholly-owned subsidiary of Kumba, is presently in
dispute with Hope Downs Iron Ore Pty Ltd (`HDIO`) in Australia in respect of the
Hope Downs Project.
The dispute, which has been referred to arbitration for hearing in October 2004,
arises pursuant to an agreement dated 29 January 1998 between, inter alia, Downs
Holding and HDIO and relates specifically to the acquisition by Anglo American
plc of a controlling interest in Kumba and whether or not HDIO has unreasonably
withheld or delayed its approval of such change in control. If HDIO is
successful in the arbitration, HDIO will be entitled to purchase the interest of
Downs Holding in the Hope Downs Project at a fair value to be determined in
terms of the agreement between the parties. Legal opinion has confirmed that
Kumba should be successful in the arbitration.
Pretoria
1 September 2004
Sponsor
JP Morgan
Date: 01/09/2004 03:30:02 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 has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
