Anpario Regulatory News (ANP)

4 Sep 2007 07:01

Anglo American PLC04 September 2007 News Release 4 September 2007 Anglo American plc notification: Anglo American plc wishes to draw your attention to the following announcementissued today by Anglo Platinum Limited: Anglo Platinum, Anooraq Resources and Mvela Resources BEE transactionsfacilitate meaningful and sustainable empowerment in the platinum industry 4 September 2007 Anglo Platinum, Anooraq Resources and Mvela Resources today announced that theyhad reached agreement on transactions that will result in the creation of twosubstantial, Historically Disadvantaged South African (HDSA) managed andcontrolled South African platinum group metal (PGM) producers, with criticalmass and significant growth potential. In terms of the transactions, Anglo Platinum will sell an effective 51% ofLebowa Platinum and an effective 1% of the Ga-Phasha Project for a totalconsideration of R3.6 billion to Anooraq. Following this transaction Anooraq,being the current owner of 50% of Ga-Phasha, will own an effective 51% of Lebowaand Ga-Phasha through a newly created vehicle, Lebowa Holdco. Mvela Resourceswill purchase Anglo Platinum's 50% interest in the Booysendal Project and 22.4%direct interest in Northam for a total consideration of R4 billion. Anglo Platinum and Anooraq have also agreed in principle to transfer, in duecourse, their respective 50% interests in the Boikgantsho and Kwanda JV Projectsinto Lebowa Holdco such that Lebowa Holdco will own 100% of these assets. As a result of these transactions Anooraq and Mvela Resources will respectivelycontrol the 3rd and 5th largest PGM resource bases in South Africa, resulting infundamental and sustainable transformation of the country's platinum industry. Anglo Platinum also announced an employee share ownership plan (ESOP) that willbenefit more than 43,000 employees. The new scheme covers all employees who donot participate in any Anglo Platinum share scheme and will comprise up to 1.5%of Anglo Platinum's issued share capital (current market value of approximatelyR3.3 billion). These transactions reflect Anglo Platinum's commitment to transformation andbroad-based BEE and, together with Anglo Platinum's ESOP will result inapproximately R35 billion of assets under HDSA control. Anglo American CEO, Cynthia Carroll commented: "This is a truly historic BEEtransaction which will fundamentally transform the South African platinum miningindustry through the creation of two major independent HDSA managed andcontrolled PGM producers. The sale by Anglo Platinum of mining assets willachieve meaningful, sustainable and broad-based empowerment through theparticipation of communities, employees and women. Anglo American is stronglycommitted to the equitable and sustainable development of the countries andcommunities in which we operate and I believe this transaction representsanother significant step forward in the empowerment of our South Africanoperations." Anglo Platinum acting joint CEO, Norman Mbazima said of the transaction: "Thesetransactions illustrate Anglo Platinum and Anglo American's commitment tobroad-based BEE as a strategic transformation initiative. We believe that thecreation of two major HDSA managed and controlled participants within the globalplatinum industry fundamentally enhances BEE and the equitable transformation ofthe mining industry." He continued: "We have sold a portfolio of quality, long life assets and createdtwo global PGM participants with critical mass and significant growth potential.We are also pleased with the breadth of the broad-based component of ourempowerment efforts. The staff employee scheme and the participation of women'sgroups and community groupings will add to the investment in Anglo Platinum'ssocial and labour plans as part of its broad-based transformation strategy." Tumelo Motsisi, Deputy CEO and Managing Director of Anooraq Resources, said: "This transaction accomplishes two of our original objectives. It immediatelytransforms Anooraq into a significant PGM producer and fulfils Anooraq's andPelawan's stated objective of creating an HDSA controlled, independent andsignificant PGM producer. Anooraq's reserves and resources will increasesignificantly such that we will now control the third largest PGM resource basein South Africa." "Lebowa is an excellent asset to add to our stable. It has attractive grades,established water, power and road infrastructure and an approved expansion inplace to double existing production by 2012 as well as a number of otherexciting growth opportunities." "Upon implementation of the transaction control of the operations at ourplatinum projects and Lebowa will pass to Anooraq. This will allow us toevaluate our project pipeline and develop the assets in accordance withAnooraq's timetable. We will also be in a position to strengthen our technicalcapacity through our enhanced relationship with Anglo Platinum." Lazarus Zim, Executive Chairman of Mvela Resources and Afripalm Resources, said:"Today is a great day for South Africa. When we announced our investment inMvela Resources we made it clear that our ultimate strategy was about buildingan operating diversified mining company. This transaction has enabled us torealise an important step in the delivery of that strategy. We fully believethat this is a sustainable, meaningful and substantial transaction and a greatdeal for independent empowerment mining." "These transactions have considerable social impact and achieve significantempowerment of local communities by introducing them as shareholders. Afripalmhas already set aside 10% of its shares for women and has committed to transfer51% of its subsidiary, Afripalm 2, to broad-based groups representing at least5,000 women." The implementation of these transactions will be subject to a number ofconditions precedent including completion of confirmatory due diligence, raisingof relevant financing, conclusion of the requisite agreements, approval by therelevant regulatory authorities and other third parties, and approval byshareholders, where required, in general meetings. Anglo Platinum, Anooraq Resources and Mvela Resources believe that themeaningful participation by beneficiaries in the transactions recognises theimportance of local communities and employees and promotes gender equality andbroad-based ownership. The inclusion of women as shareholders is in line withAnglo Platinum's transformation objectives for the mining sector and theparticipation of community groupings associated with the operating mines, andfrom labour sending areas, will benefit in excess of 55,000 HDSAs. -ends- Further details on the media and analyst presentation to be held on 4 September2007 (including Summit TV and webcast information) are available on therespective company websites Contact details: Anglo Platinum +27 11 373-6462 Trevor Raymond +27 82 654 8467(www.angloplatinum.com) Mvela Resources + 27 11 325 5323 James Wellsted + 27 83 453 4014(www. mvelares.co.za) Anooraq Resources + 27 11 883 0831 Joel Kesler(www. anooraqresources.com ) Brunswick +27 11 268 5750 Rob Pinker +27 83 326 7794Itumeleng Mahabane + 27 83 284 6774 College Hill for Anooraq Resources + 27 11 447 3030 Nicholas Williams + 27 83 607 0761Nandile Ngubentombi + 27 82 825 8004 Notes to Editors: Mvela Resources Mvela Resources is an HDSA company, its major shareholders being AfripalmResources Limited which has an economic interest of 19.2% and a voting interestof 30.8% and Mvelaphanda Holdings Limited, which has an economic interest of22.7% and a voting interest of 19.5%. Afripalm Resources has broad-basedparticipation through Unipalm Investment Holdings Limited, which is a 15%shareholder in Afripalm Resources, and trusts, representing broad-based women,employees and communities, which own a further 30% in Afripalm Resources.Unipalm is a national broad-based empowerment group representing more than 30,000 broad-based HDSAs. Since its inception in 2001, Mvela Resources has acquired significantinvestments in the South African gold, platinum and diamond sectors, as well asexploration and development joint ventures in sub-Saharan Africa, with a focuson South Africa. Listed investments include a 21.8% interest in Northam and afully diluted 20.7% interest in Trans Hex Group Limited ("Trans Hex"). MvelaResources, through its wholly-owned subsidiary Mvela Gold, holds a 15% interestin Gold Fields Mining South Africa (Proprietary) Limited, an unlisted subsidiaryof Gold Fields Limited which houses Gold Fields' South African operationsincluding the Driefontein, Kloof, Beatrix and South Deep mines. Exploration anddevelopment joint ventures have been established with global mining groups suchas De Beers Consolidated Mines Limited, Trans Hex and Lonmin plc. Anooraq Resources Anooraq is engaged in the exploration and development of PGM properties in theBushveld Complex and has a long-term objective of becoming a significant PGMproducer in South Africa through organic and acquisitive growth. Its assetsinclude 50% interests in the Ga-Phasha, Boikgantsho and Kwanda JV Projects. Anooraq is incorporated in the Province of British Columbia, Canada and is 64.6%owned and controlled by Pelawan, which also holds 167 million Anooraq warrants.Anooraq has a primary listing on the Toronto Venture Exchange with secondarylistings on the American Stock Exchange and the JSE Limited. Pelawan's shareholder base comprises 15 broad-based BEE entities, includingwomen investment groups, which account for approximately 42% of Pelawan,cultural trusts and Limpopo-based rural groups within the proximity of Anooraq'soperations. Anooraq is one of the leading mining companies committed to womenownership in the mining sector. Women's interests include Mookodi Trading,Africa Without Boundaries Mining and Leswika Women's Investments. Each of thesewomen's groups is committed to the advancement of women's interests and providea meaningful contribution to Pelawan at board level. This information is provided by RNS The company news service from the London Stock Exchange