| Thu 2 Feb 2006, 14:00 | | Kumba and Chinese partners to expand Chifeng zinc |
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KMB
KMB
Kumba and Chinese partners to expand Chifeng zinc smelter in inner Mongolia,
China
KUMBA RESOURCES LIMITED
Incorporated in the Republic of South Africa
(Registration Number: 2000/011076/06)
Share Code: KMB
ISIN Number: ZAE000034310
("Kumba")
2 February 2006
KUMBA AND CHINESE PARTNERS TO EXPAND CHIFENG ZINC SMELTER IN INNER MONGOLIA,
CHINA
Kumba Resources Limited (Kumba) has concluded agreements with five Chinese
companies to expand the zinc metal production capacity of the Chifeng Zinc
Smelter in Inner Mongolia, China, from 50 000tpa to a targeted 110 000tpa over a
three-year period.
In terms of the agreements, the smelter will be managed by a new company,
Chifeng NFC Kumba Hongye Zinc Corporation Limited (CNKH), an equity joint
venture comprising China Nonferrous Metal Industry"s Foreign Engineering and
Construction Corporation Limited (NFC), Kumba, the existing partners in the
Chifeng smelter, namely Chifeng Hongye Zinc Smelting Company Limited and Chifeng
Baiyinnuoer Lead Zinc Mine Company Limited, and new partners Chifeng City Power
Engineering General Company and Xinbaerhuyouqi Xinxin Mine Company Limited.
Kumba will hold an effective interest of 23% in the total complex at full
production.
"The joint venture partners provide a strong combination of engineering, mining
and smelting expertise. Together with a stable supply of electricity and
concentrate, the expanded operation will enhance the value of the company to the
benefit of all stakeholders," said Nazir Jogiat, general manager of Kumba"s base
metals division.
The agreements are subject to approval from the relevant Chinese authorities and
once this is obtained, construction will begin with completion expected by end
2006. "Although this is a tight construction schedule, our Chinese partners have
demonstrated their ability to build such a facility in the allotted period. The
considerable experience and expertise of NFC in this field will further enhance
this capability," said Jogiat.
China has become the world"s most important market for base metals and over the
next decade Kumba expects huge potential in the country for further growth in
consumption of commodities such as zinc and copper.
Editor"s Note:
ABOUT THE CHIFENG ZINC SMELTER
The Chifeng Zinc Smelter is located at two sites in the Chifeng Municipality in
the Inner Mongolia Autonomous Region. The main roasting and acid plant is
situated in Lindong, while the wet processing facility is situated in Chifeng
City, located some 700km and 350km respectively north-east of Beijing.
An agreement was signed on 29 August 2002 to expand the then 24 000tpa operation
to a 50 000tpa zinc slab producer in which expansion Kumba held a 60% stake. In
2005 the smelter produced more than 48 000 tons of zinc, well on its way to
achieve the targeted 50 000 tons per annum.
ABOUT KUMBA RESOURCES LIMITED
One of the largest South African-based mining companies listed on the JSE
Securities Exchange, Kumba Resources is a focused metals and mining company with
a diverse commodity portfolio consisting of iron ore, heavy minerals, coal, base
metals and industrial minerals. www.kumbaresources.com
For further information contact:
Trevor Arran
General Manager: Kumba Corporate Affairs & Investor Relations
Tel: +27 12 307 3292
Mobile: +27 83 609 1444
Nazir Jogiat
General Manager: Kumba Base Metals
Tel: +27 12 307 4906
Mobile: +27 83 609 1153
Sponsor: J.P.Morgan Equities Limited
Date: 02/02/2006 02:00:18 PM Produced by the JSE SENS Department
