Anglo Platinum Limited - Anglo Platinum And Xstrat
Anglo Platinum Limited - Anglo Platinum And Xstrata Alloys Form Mototolo JV To
Develop New Platinum Group Metals Mine And Concentrator
Anglo Platinum Limited
(formerly Anglo American Platinum Corporation Limited)
Incorporated in the Republic of South Africa
Registration No.: 1946/022452/06
JSE codes: AMS; AMSP
ISIN: ZAE000013181; ZAE000054474
ANGLO PLATINUM AND XSTRATA ALLOYS FORM MOTOTOLO JV TO
DEVELOP NEW PLATINUM GROUP METALS MINE AND CONCENTRATOR
Anglo Platinum and Xstrata Alloys (`Xstrata`) have formed the Mototolo Joint
Venture (the `Mototolo JV`) to develop a platinum group metals (PGM) mine and
concentrator on the Eastern Limb of the Bushveld Complex in Mpumalanga, South
Africa. The project is expected to produce approximately 132,000 ounces of
platinum and 82,000 ounces of palladium in concentrate per annum.
Anglo Platinum and Xstrata will each contribute a similar amount of in-situ PGM
reserves and resources from Xstrata`s Thorncliffe farm, adjacent to its
Thorncliffe chrome mine and Anglo Platinum`s bordering farm Richmond, part of
its Der Brochen project area, to the venture. The total capital expenditure for
the project is estimated at R1.35 billion (USD200 million) to commissioning, of
which Xstrata and Anglo Platinum will each contribute R675 million (USD100
million).
The project benefits from a life of mine of approximately 20 years at a planned
milling rate of 200,000 tonnes per month and an estimated head grade of 3.74
grammes per tonne.
Xstrata will be responsible for developing and operating the underground mine,
contributing its expertise in mechanised room and pillar mining, while Anglo
Platinum will construct and manage a 200,000 tonnes per month PGM concentrator.
Anglo Platinum will purchase Xstrata`s 50% share of PGM concentrate for further
smelting refining and marketing of finished product. Xstrata will construct a
beneficiation plant at its own cost to process the UG2 chrome tailings arising
from the PGM concentrator and will purchase Anglo Platinum`s share of chrome
concentrate.
Construction of the mine and concentrator is expected to commence in the third
quarter of 2005, with initial production of PGM ounces anticipated in the last
quarter of 2006 and full production in the third quarter of 2007.
The Mototolo JV is a pooling and sharing arrangement between Xstrata and Anglo
Platinum. Both parties will comply with the requirements of South Africa`s
Mineral and Petroleum Resources Development Act and Charter.
Ralph Havenstein, CEO of Anglo Platinum said:
`By leveraging off the strengths and experience of both partners, this project
will accelerate Eastern Bushveld platinum development and will also create some
1,100 new job opportunities. The formation of the Mototolo joint venture will
increase Anglo Platinum`s production of platinum group metals in a capital and
cost efficient manner.`
Peet Nienaber, Xstrata Alloys Chief Executive, said:
`The Mototolo joint venture provides Xstrata with an entry into an attractive
commodity, working with an experienced partner. The combination of Xstrata`s
expertise in developing and managing underground chrome mines, together with
Anglo Platinum`s processing and downstream capabilities will enable both
partners to realise a low-cost, high return project with a rapid development
profile.`
Xstrata Contacts
Claire Bithell
Telephone +44 20 7968 2871
Mobile +44 7785 278294
Email cbithell@xstrata.com
Etienne du Preez
Telephone +27 14 590 2357
Mobile +27 82 655 1409
Email edupreez@xstrata.co.za
Anglo Platinum Contact
Trevor Raymond
Telephone +27 11 373 6462
Mobile +27 82 654 8467
Email traymond@angloplat.com
Johannesburg
3 August 2005
Sponsor
Merrill Lynch South Africa (Pty) Ltd
Date: 03/08/2005 08:00:08 AM
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