| Tue 26 Sep 2006, 11:02 | | AfroCentric - Joint Venture With Rio Tinto |
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ACT ACTP
ACT
AfroCentric - Joint Venture With Rio Tinto
Afrocentric Investment Corporation Limited
(Formerly WB Holdings Limited)
(Incorporated in the Republic of South Africa)
(Registration number 1988/000570/06)
JSE code: ACT, ACTP
ISIN: ZAE000078416, ZAE000082269
("AfroCentric", or "the company")
CONCLUSION OF A MUTUAL COOPERATION AGREEMENT WITH RIO TINTO PLC ("RIO TINTO")
AfroCentric and Rio Tinto today jointly announced the completion of a broad
mutual cooperation agreement ("strategic agreement") covering exploration and
mining related opportunities locally and elsewhere in Southern Africa.
Under the terms of the strategic agreement, Rio Tinto and AfroCentric will
jointly pursue selected new exploration and mining initiatives in South Africa
and the rest of the African continent.
The strategic agreement is designed to take advantage of the relative skills of
each party, industry expertise and local knowledge. Both companies have
identified or been made aware of numerous resource opportunities that could
benefit from their cooperation and joint pursuit.
Rationale
The strategic agreement is consistent with AfroCentric"s stated intention of,
inter alia, partnering with established international companies seeking to
pursue new or expanded business opportunities in South Africa.
AfroCentric is of the opinion that Rio Tinto"s technical breadth and depth,
strong focus on operational excellence and a commitment to responsible mining
practices together with a firm understanding of its social responsibilities, as
well as a healthy balance sheet, make it an ideal partner for AfroCentric.
With the history of mining in South Africa and the control of many mining
resources and assets by old-line companies currently being addressed through the
mining charter and other regulatory initiatives, this is a pivotal period for
the mining industry. The strategic agreement puts AfroCentric in an ideal
position to take advantage of the opportunities presented.
Information about Rio Tinto
Rio Tinto is one of the world"s leading mining groups, with a market
capitalisation of about US $70 billion. Major products include aluminium,
copper, diamonds, energy products, gold, industrial minerals (borates, titanium
dioxide, salt and talc) and iron ore. It is listed on both the London and
Australian stock exchanges and has an ADR listing on the New York Stock
Exchange.
Rio Tinto"s present interests in South Africa lie mainly with copper and heavy
minerals. Rio Tinto has a 46.5% interest in South Africa"s largest copper mine,
Palabora, where gold is also produced as a by product, as well as a 50% interest
in Richards Bay Minerals (RBM) which produces titanium from ilmenite, zircon and
rutile beach placer deposits. Other African investments include:
69 percent share in Rossing Uranium mine in Namibia,
78 per cent share in Murowa diamond mine in Zimbabwe, and
the recently announced 70 percent owned Chapudi coal project in partnership with
Kwezi Mining.
Johannesburg
26 September 2006
Corporate Adviser and Sponsor
Sasfin Capital
A division of Sasfin Bank Limited
Date: 26/09/2006 11:02:03 AM Produced by the JSE SENS Department
