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Aveng Limited - Marikana Mine Update
AVENG LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1944/018119/06)
Share code: AEG
ISIN: ZAE000018081
("Aveng")
Marikana Mine Update
Tuesday 20 December 2005
1. Moolman Mining (Moolmans) contracted with Aquarius Platinum (South Africa)
(Pty) Ltd (APQSA) to provide a drill, blast, load and haul contracting mining
service at the Marikana mine. This contract accounted for approximately 1,5% of
Aveng"s revenue in the past financial year.
2. A dispute arose when APQSA underpaid Moolmans on their monthly
certificates. Arising from this dispute the parties agreed that independent
auditors KPMG would report on inter-alia the contract expenditure incurred on
the Marikana Mine and the accuracy of the calculation of the contract
expenditure allocated to each of the cost elements fuel, local and foreign for
the period from inception to 31 December 2002 and for each six months period
thereafter and to determine the actual weightings for these cost elements for
the same period. Based on this report an invoice was issued by Moolmans for
R169m in respect whereof payment was not received on due date.
3. The underpayment has escalated to over R200 million at the end of November.
In addition, substantial claims in respect of standing time and other variations
have been lodged by Moolmans.
4. Late yesterday afternoon APQSA notified Moolmans that it had taken the
decision to `rescind" the Marikana mining contract with immediate effect, based
on an `actionable misrepresentation" at the time of agreeing the contract
approximately four years ago.
5. Moolmans advised APQSA that it denies misrepresenting any material facts
and that their seeking to rescind the agreement constituted an unlawful
repudiation of the contract which has been accepted by Moolmans. Moolmans stated
that it would be exercising its right to claim all amounts due to it in terms of
the contract and at law.
Today, Moolmans ceased operations at Marikana and will be seeking to redeploy
the large number of people and substantial quantity of equipment employed on the
project.
For further information please contact:
Carl Grim or Dennis Gammie
Aveng Ltd +27 11 779 2800
or
Carl Grim +27 82 903 8346
Dennis Gammie + 27 82 828 0044
or visit:
www.aveng.co.za
Sponsor:
J.P.Morgan Equities Limited
Date: 20/12/2005 05:17:09 PM Produced by the JSE SENS Department
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