Last checked at 3 Mar 2011 14:56
Watermark Global Plc("Watermark" or "the Company")
Shareholder Update
The Board of Watermark wishes to provide shareholders with an update on the situation regarding the Acid Mine Drainage ("AMD") project in South Africa, currently being progressed by its wholly-owned subsidiary, Western Utilities Corporation (Pty) Ltd. ("WUC")
On 24 February 2011, the government released the report entitled "Mine Water Management in the Witwatersrand Gold Fields with Special Emphasis on Acid Mine Drainage" which was submitted to the Inter-Ministerial Committee and subsequently to Cabinet.
WUC has reviewed the report and before any meaningful or detailed comments can be made with regard to the contents of the report, WUC and the affected Mining Industry entities first need to clarify certain technical issues with the Department of Water Affairs ("DWA") and its advisers.
The report does, however, make clear a distinction between short, medium and long term action plans required to address AMD in the Witwatersrand Gold Fields. It is difficult to ascertain the envisaged role of the Mining Industry and WUC within the short to medium term strategy, as contained in the report, and this needs to be clarified with DWA. It is the opinion of the Board that WUC and the Mining Industry could provide significant capacity and expertise during the short and medium term but WUC's involvement will be dependent on a detailed DWA implementation plan which has not been included in the report.
The report has also reviewed the technologies available for the treatment of the AMD within each of the Witwatersrand basins (Western, Central and Eastern). Based on the economic viability of the various processes, the report indicates that the ABC and MBA processes, both of which have been developed by the Council for Scientific and Industrial Research ("CSIR") and TUT ('Tshwane University of Technology") will be the most appropriate. WUC has rights to the ABC process and any additional improvements on the ABC process (which includes the MBA process). The MBA, process, in essence, is the ABC process with the additional step of the recovery of magnesium hydroxide. The report also indicates that the long term process will be subject to a tender process for technology. WUC expects to participate in this tender process.
The Board remains confident that WUC still has significant value to add to the long-term treatment of AMD in the Witwatersrand Gold Fields.
The Company will provide the market with additional updates once we have had the opportunity to meet with the DWA to clarify the key outstanding issues such as those referred to above.
Investor Relations
Charles Zorab Tel: + 44(0) 20 7233 1462
czorab@watermarkglobalplc.com
Nominated Adviser: Cenkos Securities
Ian Soanes/Elizabeth Bowman Tel: +44(0) 20 7397 8900