Lonrho Regulatory News (LONR)

11 Oct 2006 10:14

Lonrho Africa PLC11 October 2006 LONRHO AFRICA PLC ("Lonrho" or "the Company") LUBA FREEPORT IN EQUATORIAL GUINEA UNDERGOES RAPID TRANSFORMATION Luba Freeport Ltd ("Luba"), Lonrho's 63% subsidiary, has undergone a rapidtransformation since Lonrho's investment in May 2006. Luba has firmlyestablished a reputation as an efficient, cost effective port for the burgeoningoil and gas industry in the Gulf of Guinea. The total number of vessel calls forthe calendar year 2005 of 767 had already been exceeded by the end of September2006, with 787 vessel calls representing an increase of 37% over the equivalentperiod last year. In order to maximise revenue from Luba, which is currentlyrunning at near to its full operational capacity, Lonrho has continued todevelop plans with management to improve the port's facilities. Significant improvements have already been made with the addition of new clientaccommodation and kitchen facilities and the recent completion of a 10,000 sq.metre chemical bunded transit area to service key customers. An additional10,000 sq. metre logistics facility for Baker Hughes, a world leader in oilfieldservices, is also expected to be completed within the next four weeks. In July 2006, Luba retained Jurong Primewide ("Jurong"), a world leader in portdevelopment to plan and design the expansion of Luba's facilities. Jurong ispart of JTC Corporation, owner-operator of Jurong Port Authority, a combinedcontainer, bulk commodity and integrated oil and gas terminal facility inSingapore. Shortly after, Luba appointed MACE, a premier independentprofessional management consultancy, who will work with Luba to help deliver theexpansion on time and budget. MACE currently manages the infrastructure deliveryfor London's 2012 Olympics and Heathrow Airport's Terminal 5. In September 2006, Mobil Equatorial Guinea Inc. ("MEGI"), part of ExxonMobil,the world's largest oil and gas producer, agreed final terms with Luba to builda 60,000 sq. metre logistics facility at the port. MEGI's move to Luba, when thefacility is completed by the middle of 2007, is expected to be a catalyst forother key players in the oil and gas industry to relocate to the port. Luba alsosigned a mandate with The Netherlands Development Finance Company ("FMO") for anup to US$30m debt financing package to fast track development of the port'sfacilities, including construction of the MEGI facility. Looking forward, Lonrho's vision for developing Luba into the premier WestAfrican shipping hub will be further realised with the start of construction foran additional 180m of quay. In addition, the development of a larger storagefacility for MI Swaco and a waste disposal and management facility for MIFluids, a leading provider of fluid engineering services to the oil and gassector, will follow the completion of the MEGI facility. Improvements to roadinfrastructure within the port area and a new medical facility will also formpart of Luba's Phase 1 expansion. Lonrho's Joint Executive Chairman and Chief Executive David Lenigas said: "The development of Luba to date has already proved significant and I amencouraged by its progress. Given the buoyant regional oil and gas industry andthe opportunity to develop Luba into a transhipping hub, the framework is now inplace for continued growth. "Lonrho's backing has already raised the interest of numerous prospectiveclients and I am confident that our investment in Luba will progressively addvalue for Lonrho's shareholders." -END- For further information, please contact: Lonrho Africa Plc +44 (0)20 7016 5105David Lenigas, Chief Executive +44 (0)7881 825 378Emma Priestley, Executive Director +44 (0)7867 785 177 Strand Partners Limited +44 (0)20 7409 3494Simon RaggettMatthew Chandler Cardew Group +44 (0)20 7930 0777Nadja Vetter +44 (0)7941 340 436Eden Mendel +44 (0)7887 676 603Emma Consett +44 (0)7971 468 308 Notes to Editors Lonrho is in the process of re-establishing a significant presence on theAfrican continent. Its investment and acquisition strategy, which was adoptedfollowing the appointment of David Lenigas as Chairman and Chief Executive andsubsequent shareholder approval in February 2006, focuses on the naturalresources, infrastructure, leisure and agribusiness sectors. Lonrho's executiveteam has considerable experience across these industries in a wide range ofcountries. This year, the Company has announced investments in Brinkley MiningPlc, Nare Diamonds Ltd and Luba Freeport in Equatorial Guinea. This information is provided by RNS The company news service from the London Stock Exchange