Tribunal Ruling re Kumba
Anglo American PLC
04 September 2003
News Release
4 September 2003
ANGLO AMERICAN WELCOMES TRIBUNAL RULING
Anglo American plc ("Anglo American") welcomes the South African Competition
Tribunal ruling released today which will enable Anglo American to proceed with
its iron ore strategy in relation to Kumba Resources Limited ("Kumba").
Anglo American intends to continue discussions with all stakeholders involved in
the iron ore industry, including the IDC, to complete a strategy that will
unlock the full growth potential of the Northern Cape iron ore assets and
supporting infrastructure. Anglo American recognises that individual
stakeholders have specific perspectives and will work together to harmonise
these.
Tony Trahar, CEO of Anglo American, said "we are pleased with the ruling as it
presents all stakeholders with a unique opportunity to work together, within the
provisions of the MOU signed with the South African government, to bring about a
multi-billion Rand expansion of Kumba's iron ore assets and supporting
infrastructure with a view to creating a world class iron ore operation with
economic scale to compete internationally. This will also create opportunities
for black economic empowerment initiatives and the upliftment of the communities
in the Northern Cape region of South Africa."
Trahar added, "Kumba needs to participate fully in the international growth
phase for iron ore. It is our intention to support and encourage Kumba to
utilise the window of opportunity currently presented by the strong global
demand growth for iron ore, recognising that South Africa's competitors are
seeking to fill that demand themselves".
Anglo American currently has a shareholding of 20,1% in Kumba, with the right to
acquire additional shares to take its stake to just under 35%.
Anglo American already has one director on the Kumba board and will be seeking
to increase this representation.
For further information:
Anglo American - London
Investor Relations Media Relations
Nick von Schirnding Kate Aindow
Tel: +44 207 698 8540 Tel: +44 207 698 8619
Anglo American - Johannesburg
Investor Relations Media Relations
Anne Dunn Marion Dixon
Tel: +27 11 638 4730 Tel: +27 11 638 3001
BACKGROUND NOTE FOR EDITORS
As a global mining and natural resources company, Anglo American has sought for
some time to complement its existing mining interests with a significant
investment in the iron ore sector. On 12 March 2002 Anglo American announced
the acquisition of 9.6% of Kumba in open market transactions, together with the
right to acquire a further 10.5% of Kumba making 20.1% and a stake in Anglovaal
Mining Limited ("Avmin").
Anglo American notified the acquisitions of Avmin and Kumba to the Competition
Commission on 20 June 2002. On 6 September 2002, in the first of a two-stage
process the South African Competition Commission recommended that the
notifications be approved unconditionally. At the second stage, the Competition
Tribunal process, the IDC sought to intervene to enable it to make
representations to the Competition Tribunal. After an appeal process the IDC
was allowed to intervene and the hearings were held between May and August this
year, with all parties presenting arguments to the Competition Tribunal.
In April 2003 Anglo American received an attractive and unsolicited bid for its
entire interest in Avmin from a consortium comprising African Rainbow Minerals
Limited and Harmony Gold Mining Company Limited. As Anglo American was aware of
sensitivities surrounding its original aim of pursuing its iron ore strategy
through major interests in both Kumba and Avmin, and as the primary focus for
Anglo American was Kumba, the largest iron ore producer in South Africa and
fifth largest in the world, Anglo American accepted the offer.
As a result, on 2 May 2003 the Avmin shareholding was sold to the consortium and
Anglo American then withdrew its notification before the Competition Tribunal in
respect of Avmin.
The Competition Tribunal hearings regarding Anglo American's acquisition of a
controlling interest in Kumba concluded on 7 August 2003.
This information is provided by RNS
The company news service from the London Stock Exchange
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