| Wed 1 Jun 2005, 9:50 | | Anglo American invests in Shenhua |
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Anglo American plc - Anglo American invests in Shenhua
Anglo American plc
(Incorporated in the United Kingdom)
Registration number: 3564138
Share code: AGL
ISIN: GB0004901517
(the `Company`)
Anglo American invests in Shenhua
Anglo American plc (`Anglo American`) has committed to invest US$150 million in
the Initial Public Offering of China Shenhua Energy Company Limited (`Shenhua`)
announced earlier today by Shenhua in Hong Kong.
The Shenhua Group was founded in 1995 as a state owned enterprise aimed at the
development of a large integrated coal-based energy company focusing on the coal
and power businesses in China. Shenhua comprises thermal coal mining operations,
rail transport infrastructure, the loading port at Huanghua and a power
generation business. Production has grown from 60 million tonnes per annum
(mtpa) in 2002 to 101 mtpa in 2004 and plans are in place to increase coal
production to 149 mtpa by 2007.
Shenhua`s coal operations are principally located in northern Shaanxi/Inner
Mongolia, 500 km west of Beijing and comprise four mining groups: Shendong
Mines, Wanli Mines, Zhunge`er Mines and Shengli Mines, with 21 operating mines
in western and northern China. In 2004, the group accounted for approximately
5.2% of China`s total raw coal production.
Tony Redman, Chairman of Anglo Coal, said, `China is an important player in the
global coal sector and we have been actively pursuing a strategy of developing a
China-based coal business. Anglo Coal is already involved in an exploration
programme in the Shaanxi Province. The strategic investment in Shenhua further
strengthens Anglo Coal`s China strategy. We are pleased to be co-operating with
Shenhua - it has long-standing experience in the region and we look forward to a
mutually beneficial strategic alliance with the group.`
In 2004, Anglo Coal completed a joint exploration agreement with the Shaanxi
Coalfield Geology Bureau to investigate the potential of the Xiwan coal lease.
The first phase of a structured exploration programme was completed during the
latter part of 2004. Drill hole results confirm that the coal lease has the
potential to support a major coal mining operation, but this would take some
time to develop.
Tony Redman continued, `the benefit of the investment in Shenhua is that it is
the largest coal producer in China and the 5th largest in the world based on its
2004 production. It is also the largest export coal producer in China,
exporting 26.6 mtpa in 2004, approximately 37% of China`s total thermal coal
exports. With a portfolio of high quality coal reserves, Shenhua is well
positioned to secure attractive market opportunities in China. Anglo Coal is
delighted to be associated with the Shenhua group and its future growth.`
For further information:
Anglo American - London
Investor Relations Media Relations
Charles Gordon Kate Aindow
Tel: +44 207 968 8933 Tel: +44 207 968 8619
Anglo American - Johannesburg
Investor Relations Media Relations
Anne Dunn Daniel Ngwepe
Tel: +27 82 448 2684 Tel: +27 11 638 2267
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)
Date: 01/06/2005 09:30:05 AM
Produced by the JSE SENS Department
