| Mon 20 Dec 2004, 17:55 | | Anglo American welcomes the agreement |
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Anglo American Plc - Anglo American welcomes the agreement between De Beers and
the Government of the Republic of Botswana
ANGLO AMERICAN PLC
JSE Code: AGL
ISIN Code: GB0004901517
(The `Company`)
20 December 2004
Anglo American welcomes the agreement between De Beers and the Government of the
Republic of Botswana renewing their partnership for a further 25 years.
The attention of Anglo American plc (`Anglo American`) shareholders is drawn to
the press release by the Government of the Republic of Botswana (`GRB`) and De
Beers (attached hereto) noting the renewal of their partnership for a further 25
years from 1 August 2004. The renewal includes the extension not only of the
Jwaneng mining licence for a further period of 25 years but also similar 25 year
extensions in respect of the current Orapa, Damtshaa and Letlhakane mining
licences. These licences were previously scheduled to expire in 2017. The
impact of the licence renewals on Anglo American`s headline earnings is not
expected to be material.
With effect from the same date, GRB and De Beers have agreed that the effective
15% holding in the equity of DB Investments SA (`DBI`), presently owned by
Debswana, will be ceded to and be owned directly by the GRB. Anglo American has
hitherto accounted for this indirect 3.65% interest held by Debswana in De Beers
as part of its 48.65% effective interest in DBI. Following this restructuring,
Anglo American will account only for its direct 45% interest in DBI. Any charge
relating to this reduction in its effective holding in DBI will be treated as an
exceptional item.
The renewal of all the De Beers mining licences in the Republic of Botswana is a
positive development for the long-term growth and success of De Beers as the
world`s leading diamond producer and reflects the continuation of the
partnership between GRB and De Beers.
For further information:
Anglo American plc
Head of Investor and Corporate Affairs
Nick von Schirnding
Tel: +44 207 698 8540
Notes to Editors:
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 platinum group metals, gold and diamonds, with significant interests
in coal, base and ferrous metals, industrial minerals and paper and packaging.
The group is geographically diverse, with operations in Africa, Europe, South
and North America, Australia and Asia. (www.angloamerican.co.uk)
Monday, 20 December 2004
GOVERNMENT OF BOTSWANA AND DE BEERS RENEW THEIR PARTNERSHIP FOR A FURTHER 25
YEARS
The Government of the Republic of Botswana (`GRB`) and De Beers are pleased to
announce that agreement has been reached in relation to the renewal of the
Jwaneng mining licence.
The Jwaneng mining licence will be renewed for a period of 25 years from 1
August 2004. Moreover, the Orapa, Damtshaa and Letlhakane mining licences will
be extended for a similar 25-year period as from 1 August 2004.
With effect from the same date, GRB and De Beers have agreed that the effective
15% holding of the equity of DB Investments sa (`DBI`) previously owned by
Debswana be ceded to and directly owned by GRB.
The renewal of the Jwaneng mining licence and the extensions of the Orapa,
Damtshaa and Letlhakane mining licences mark the long-term continuation of the
unique and important partnership between GRB and De Beers.
MORE...
Enquiries:
Nicola Wilson Lynette Hori
Tel: +27 (0) 11 374 7399 / Tel: +44 (0) 207 430 3509 /
Mobile: +27 (0) 83 299 5552 Mobile: +44 (0) 7740 393260
nicola.wilson@debeersgroup.com lynette.hori@dtc.com
Note to Editors:
As the world`s leading diamond company, operating on five continents, De Beers
employs almost 24 000 people worldwide. With 20 operations in Africa and more
than a century of extensive diamond mining experience, De Beers endeavours to
create successful and sustainable mining activity wherever it operates. In
2004, De Beers exploration has reached `partner of choice` joint venture
exploration agreements and strategic alliances in Canada, Botswana, India,
Democratic Republic of the Congo, Central African Republic, Russia, Australia,
Brazil and Madagascar. During this period the company`s geologists have
discovered 39 new kimberlite deposits in seven countries on four continents. De
Beers geologists have to date discovered over 1600 kimberlites in the world and
those developed into mines will contribute approximately 82% of the diamonds
mined by De Beers and its partners, Debswana and Namdeb in carat terms and 75%
by value in 2004. For further information on the De Beers Group, please visit
www.debeersgroup.com
ENDS
