KUMBA RESOURCES LIMITED - KUMBA UNSUCCESSFUL IN HOPE DOWNS ARBITRATION
KUMBA RESOURCES LIMITED
Incorporated in the Republic of South Africa
(Registration Number: 2000/011076/06)
Share Code: KMB
ISIN Number: ZAE000034310
KUMBA UNSUCCESSFUL IN HOPE DOWNS ARBITRATION
Diversified metals and mining company Kumba Resources Limited (`Kumba`) today
announced that it has been unsuccessful in the arbitration process initiated to
resolve a dispute between Kumba`s wholly-owned subsidiary, Downs Holding BV
(Downs), and Hope Downs Iron Ore Pty Limited (HDIO), a subsidiary of Kumba`s
Australian partner in the Hope Downs joint venture, Hancock Prospecting Pty
Limited (Hancock). The dispute arose from Anglo American plc acquiring a
controlling interest in Kumba in December 2003 and concerned whether HDIO had
unreasonably withheld or delayed its approval of the change in control.
While disappointed at the outcome, Kumba is studying the decision of the
arbitrators. In terms of the agreement between Downs and HDIO, HDIO may elect to
acquire Kumba`s interest in the project at a value to be determined by agreement
and failing agreement by an independent expert. The market will be advised of
further developments. In the meanwhile, Kumba will continue to pursue its many
other development opportunities.
Pretoria
21 December 2004
Sponsor
JPMorgan
Date: 21/12/2004 10:48:01 AM
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