Anglovaal Mining Limited
(Incorporated in the Republic of South Africa)
(Registration number 1933/004580/06
("Avmin")
Anglovaal Mining Limited
(Incorporated in the Republic of South Africa)
(Registration number 1933/004580/06
("Avmin")
Impala Platinum Holdings Limited
(Registration number 1957/001979/06)
("Implats")
AVMIN AND IMPLATS ACQUIRE DWARS RIVIER PGM RIGHTS
Avmin and Implats ("the companies") announced today that they have been
successful with a R551 million bid for the platinum group metals ("PGM")
rights on the UG2 and Merensky reefs, together with the associated surface
rights, on the farm Dwars Rivier in Mpumalanga, South Africa. The rights
were acquired from The Associated Manganese Mines of South Africa Limited
("Assmang") in a bidding process initiated by Assmang in September 2000.
The companies have formed a joint venture, Two Rivers Platinum (Pty) Limited
("Two Rivers"), to develop, manage and operate a new mine. Two Rivers is
held 55 per cent by Avmin and 45 per cent by Implats and has appointed Avmin
to manage and conduct future development and operating activities.
An exploration drilling programme is expected to commence on the property
over the next few months to confirm details in the preliminary evaluation,
which indicated a resource of 50 million tons of UG2 Reef.
Work done to date suggests the sinking of a decline shaft is the best option
to access the ore body and that mechanised mining would allow the mine to
attain full production within two years of the start of shaft sinking. A
concentrator plant will be erected on site and Impala Refining Services
("IRS"), a wholly-owned subsidiary of Implats, will purchase the concentrate
for smelting and refining and will conduct the PGM marketing. The base
metals in concentrate will be toll-refined by IRS and the marketing
conducted by Avmin. It is anticipated that Two Rivers will produce between
160 000 and 170 000 ounces of PGMs a year, with an expected life of
approximately 20 years. The capital expenditure for the new mine is
estimated to be between R500 and R700 million.
Dwars Rivier is located on the eastern limb of the Bushveld complex, near
the town of Lydenburg. Nearly 200 new jobs could be created by the mine,
with further job creation prospects in supportive industries in the broader
community.
The conclusion of the agreements pertaining to this acquisition will be
subject to certain conditions, including:
* Assmang shareholder approval; and
* obtaining the necessary regulatory and statutory consents and
authorisations.
Johannesburg
30 May 2001
Avmin sponsor
  Deutsche Securities (SA) (Pty) Limited
  (Registration number 1995/011798/07)
Implats sponsor
  JP Morgan