IMPALA PLATINUM HOLDINGS LIMITED - SUSPENSION OF MINING OPERATIONS AT CROCODILE
IMPALA PLATINUM HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1957/001979/06)
Share code: IMP/IMPO
Suspension of mining operations at Crocodile River mine
Implats has advised today, 24 November 2003 that the Board of Barplats
Investments Limited (Barplats) has resolved to suspend current mining operations
at the Crocodile River mine. Implats has an 83% shareholding in Barplats. The
mine will be placed on a care-and-maintenance basis as soon as possible whilst
alternative options are being evaluated. Crocodile River mine is a wholly-owned
operation of Barplats.
This announcement follows the notice given both in the Implats and Barplats
annual reports issued in August 2003 that the mine has continued to incur
substantial losses and that the various options to bring the mine back to
profitability had previously proved to be unsuccessful. This situation has been
exacerbated by the continued strengthening of the Rand against the US Dollar,
which has had a significant impact on the profitability and viability of the
Implats had hoped to conclude a sale of its interest in Barplats by this time.
Although various offers have been received and discussions with a number of
parties are continuing, no satisfactory financial conclusion has yet been
In order to minimize further losses, the Barplats board has decided to suspend
current mining operations. At the same time trial mining will continue at
Zandfontein and supplementary ore resources will be pursued to maintain
throughput at the mine"s processing operation.
Barplats has been reliant on a R200 million facility from Implats to fund
operations, of which R140 million has been used to date. It is estimated that
the nett cost of care-and maintenance will amount to some R0.5 million per month
and the Implats loan will be extended to cover this for the foreseeable future.
Shareholders will be advised of further developments in due course.
24 November 2003
Member of the Deutsche Bank Group
Deutsche Securities (SA) (Proprietary) Limited
(Registration number 1995/011798/07)
Date: 24/11/2003 08:01:04 AM Supplied by www.sharenet.co.za
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