| Mon 20 Nov 2006, 16:30 | | Anglo American subsidiary Kumba Iron Ore lists on |
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AGL KIO
ANAAL KIO
Anglo American subsidiary Kumba Iron Ore lists on the JSE
Anglo American plc
(Incorporated in the United Kingdom)
Registration number: 3564138
Share code: AGL
ISIN: GB0004901517
(the "Company")
ANGLO AMERICAN SUBSIDIARY KUMBA IRON ORE LISTS ON THE JSE
Anglo American plc ("Anglo American") is pleased to announce that Kumba Iron Ore
Limited ("Kumba Iron Ore"), a 64.1% subsidiary of Anglo American, listed on the
Johannesburg Stock Exchange today. This listing, together with Kumba Resources,
renamed Exxaro, which begins trading next Monday, 27 November, 2006, represent
two of the most significant empowerment transactions in South Africa to date
both initiated by Anglo American.
In December 2003 when Anglo American acquired 67% of Kumba Resources it
determined, with the support of the other shareholders in the company especially
the Industrial Development Corporation, to create an empowerment construct that
would add value for shareholders and give investment confidence in the future of
the country.
The Kumba Iron Ore share debuted at 11500c, giving the group a market
capitalisation of R36bn.
Kumba Iron Ore is a key producer of iron ore, exporting 73% of its production to
30 major customers worldwide.
Anglo American chief executive Tony Trahar said that in line with the group"s
strong commitment to transformation and empowerment two significant companies
had been created-South Africa"s biggest ever BEE company Exxaro and a focussed
iron ore operator with strong growth prospects. "We are confident that Kumba
Iron Ore will contribute materially to Anglo American"s continued growth, and
that it will play a key role in our iron ore strategy," Trahar said, adding,
"Kumba Iron Ore is currently undertaking the biggest capex project ever in SA"s
iron ore history with the current Sishen Expansion Project 1of 13Mtpa tons at a
cost of R5.1bn."
Kumba Iron Ore chief executive, Ras Myburgh, said Kumba Iron Ore"s experienced
management team was looking forward to growing an already strong business.
Myburgh said Kumba Iron Ore would be a significant contributor to Anglo
American"s bottom line, as iron ore demand remained buoyant.
In line with this demand, Myburgh said Kumba Iron Ore had plans to increase its
current 32Mtpa output to 42Mtpa by 2009. "In addition, we have the reserves to
take production up to 70Mtpa by 2015 with our strong pipeline of seven key
projects which will support this growth. The 13Mtpa Sishen Expansion Project is
already underway, and the Sishen Expansion Project II, which could add as much
as 20Mtpa to production, is currently at pre-feasibility study stage. A
feasibility study to develop a new mine 70km south of the existing Sishen mine
with an initial capacity of 9mtpa is expected to be finalised early next year.
Myburgh added, "We are proud to announce the establishment of an employee share
participation scheme called Envision, which will see the transfer of three per
cent of Sishen Iron Ore Company"s shares to employees. Envision represents a
critical step in our aim to define a new level of operational and people
performance in our industry. It also represents one of our key objectives,
namely to deliver outstanding sustainable value to all our stakeholders - our
employees included," says Myburgh.
Investor Relations and media enquiries:
Anne Dunn
Tel: +27 11 638 4730
Mob: +27 82 448 2684
Background/additional notes for editors
ANGLO AMERICAN plc
Anglo American:
* Now owns 64.1% of Kumba Iron Ore (13% is held by the IDC and the balance will
be freefloat) which gives Anglo American an effective direct economic interest
of 47% in SIOC, in addition to a further indirect interest of 4% through Anglo
American"s 19% stake in Exxaro.
* retains 19% of Exxaro as a demonstration of its long-term commitment to Exxaro
of which 10% will be locked in for 10 years
* has granted options to Exxaro to acquire 100% of Namakwa Sands and 26% of the
Black Mountain zinc mine and the Gamsberg zinc project at a total fixed price of
R2.2 billion ($300 million)
KUMBA IRON ORE
Kumba Iron Ore will be a fully empowered company. Exxaro will have a 20%
shareholding in the Sishen Iron Ore Company, the Northern Cape broad-based
community groups will have another 3% shareholding and this, together with the
employee empowerment/share participation scheme (Envision) of 3%, enables Kumba
Iron Ore to be 26% BEE compliant on day one.
www.kumba.co.za
20 November 2006
Sponsor: J.P.Morgan Equities Limited
Date: 20/11/2006 04:30:14 PM Produced by the JSE SENS Department
