Implats - Sumitomo Corporation to Acquire 25% OF A11 Aug 2005
Implats - Sumitomo Corporation to Acquire 25% OF Ambatovy Project               
Impala Platinum Holdings Limited                                                
(Incorporated in the Republic of South Africa)                                  
Registration No. 1957/001979/06                                                 
Share code: IMP/IMPQ    ISIN: ZAE000003554                                      
LSE: IPL      ADR`s IMPUY                                                       
(`Implats` or `the company`)                                                    
Sumitomo Corporation to Acquire 25% OF Ambatovy Project                         
Impala Platinum Holdings Limited (Implats - JSE: IMP, LSE: IPLA, ADR: IMPUY),   
Dynatec Corporation (Dynatec - TSX: DY) and Sumitomo Corporation (Sumitomo -    
TSE:8053, ADR: SSUMY) today announced that Dynatec and Sumitomo have entered    
into an agreement, confirmed by Implats, whereby Sumitomo will acquire a 25%    
interest in the Ambatovy Nickel Project in Madagascar. Sumitomo is one of       
Japan`s largest integrated trading and investment companies with total assets of
5.5 trillion yen (US$49.4 billion) and a market capitalization of 1.16 trillion 
yen (US$10.4 billion).                                                          
Bruce V. Walter, President and Chief Executive Officer of Dynatec commented:    
`Sumitomo, with its significant financial capacity and expertise in developing  
major resource projects, is an excellent addition to Ambatovy.  We now have the 
equity partners in place to move the Project forward.  We are confident that the
combination of strengths which Implats, Sumitomo and Dynatec bring to Ambatovy  
will ensure that the Project is a major success.`                               
Mitsuhiko Yamada, Corporate Officer, General Manager of Mineral Resources       
Division 1 of Sumitomo, said: `Sumitomo is pleased to join the Ambatovy         
partnership.  Ambatovy is a highly competitive project with the potential for   
large-tonnage long-life production of nickel metal and cobalt metal, two metals 
with excellent long-term fundamentals, and very low operating costs. Implats and
Dynatec are excellent partners who are committed to the long-term operation of  
the Project and we are looking forward to working with them.`                   
Keith Rumble, Implats Chief Executive, said, `Implats is delighted that Sumitomo
will be the third partner in the Ambatovy Project. Implats has had a long-      
standing relationship with Sumitomo built on a strong foundation of mutual      
In accordance with the terms of the Implats/Dynatec agreement (announced on May 
26, 2005), both companies will reduce their respective interests in Ambatovy to 
37.5%, with Dynatec to receive the full financial consideration related to      
Sumitomo`s entry as a 25% shareholder.                                          
Key features of the Sumitomo agreement include:                                 
i.   Sumitomo will fund 25% of the equity requirement for Ambatovy and provide  
its pro rata share of project financing completion guarantees related to   
     the project debt funding being sought for the Project.  The partners are   
     seeking project debt representing at least 50% of the total funding        
ii.  Sumitomo will provide Dynatec with a subordinated loan facility, which will
     be used to fund a portion of Dynatec`s equity contributions to the Project.
     The loan will be repaid from 60% of the distributions to Dynatec from the  
iii. Sumitomo will provide a project completion cross guarantee with respect to 
     a substantial portion of Dynatec`s financing guarantees related to project 
     debt, for which Dynatec shall pay to Sumitomo a fee of 10.2 million common 
     shares of Dynatec, payable annually in arrears in four equal installments  
of 2.55 million shares each, commencing on December 31st of the year in    
     which the project debt financing closes.                                   
iv.  Sumitomo has undertaken to ensure that for the first 15 years of production
     not less than 30,000 tonnes per annum of nickel produced by the Project    
will be acquired by offtakers (or, if required, by Sumitomo) on arms-length
Implats, Dynatec and Sumitomo have agreed to modify the pending Implats-Dynatec 
shareholders agreement with respect to the Ambatovy Project as necessary to     
reflect Sumitomo`s entry into the Project by no later than September 30, 2005.  
The Ambatovy feasibility study released by Dynatec in February 2005 indicated   
the potential for 60,000 tonnes per annum (tpa) of nickel metal and 5,600 tpa of
cobalt metal, with cash operating costs expected to be near the bottom of the   
global cost curve. Over the first 10 years of full production, the Project is   
expected to have average cash operating costs of US$0.67 per pound of nickel    
after credits and to generate average after-tax cash flow of US$338 million per 
annum, assuming base case pricing of US$3.50 per pound nickel and US$10.00 per  
pound cobalt.                                                                   
The feasibility study estimated that the capital costs for the Project would    
total US$2.25 billion.  These costs are currently being reviewed in light of the
potential savings as a result of the decision to locate the refinery portion of 
the Ambatovy Project in Springs, South Africa, thereby leveraging Implats` core 
competencies and existing infrastructure.                                       
Detailed engineering work at Ambatovy is progressing, and is expected to be     
sufficiently advanced for construction to begin by the second quarter of 2006,  
assuming sufficient progress with negotiations for project debt financing.      
Based on this timing, and the current construction schedule, initial production 
could be recorded by the end of 2008.                                           
About Sumitomo                                                                  
Sumitomo Corporation is one of Japan`s largest integrated trading and investment
business enterprises. The Corporation not only conducts commodity transactions  
in all industries utilizing worldwide networks, but also provides related       
customers with various financing, serves as an organizer and a coordinator for  
various projects, and invests in businesses from mining and metals, to the      
information industry, to the retailing industry.                                
About Implats                                                                   
Implats is the world`s second largest primary producer of platinum.  As a       
natural consequence of platinum group metal production, Implats has been        
producing nickel for in excess of thirty years. Exposure to a large laterite    
project will enable Implats to process and refine nickel at comparable cost to  
primary nickel producers. It therefore represents growth in one of Implats` most
important metals, and fits neatly into Implats` strategic envelope. Implats     
employs some 31,600 people across its operations and, in the 2004 financial     
year, produced approximately 1.96 million ounces of platinum (around 3.73       
million ounces of PGMs).                                                        
About Dynatec                                                                   
Dynatec Corporation is a growing mining company with extensive mining and       
metallurgical expertise. Dynatec`s strategy is to create shareholder value by   
applying the expertise of its 1,300 employees to attractive projects as an      
owner/operator. The Company currently has four projects in its portfolio: the   
large-tonnage Ambatovy Nickel Project in Madagascar; a 25% interest in the      
Sudbury Basin Joint Venture, which currently has one producing mine and is      
pursuing development of several others; a 50% interest in Aurora Platinum Corp.,
which has a 60% interest in the historic Falconbridge Mine and significant land 
holdings and exploration targets in the Sudbury basin; and a wholly owned coal- 
bed methane project in West Virginia.                                           
About Madagascar                                                                
Madagascar is the world`s fourth largest island and is located 500 kilometres   
off the east coast of southern Africa. The population of Madagascar is          
approximately 17 million.  A former French colony, the country gained its       
independence in 1960 and is now a democratic republic. The current government,  
headed by President Marc Ravalomanana, was elected in 2002.  The government has 
identified the responsible development of large-scale resource projects as an   
important element of the country`s economic development strategy. In pursuing   
this strategy, the Malagasy Government has received guidance from the World Bank
with respect to large-scale mining laws and environmental impact assessment.    
Forward-Looking Statements                                                      
This news release contains certain forward-looking statements.  These forward-  
looking statements are subject to a variety of risks and uncertainties beyond   
the companies` ability to control or predict which could cause actual events or 
results to differ materially from those anticipated in such forward-looking     
statements.  In this news release, forward-looking statements are made related  
to the ownership and potential development and operation of the Ambatovy Nickel 
Project.   Readers should not place undue reliance on these or other forward-   
looking statements.                                                             
Johannesburg, Toronto, Tokyo (August 11, 2005):                                 
For further information, please contact:                                        
Keith Rumble        Cathie Markus                                               
Chief Executive          Executive Director                                     
Impala Platinum          Impala Platinum                                        
+27 11 481 3956          +27 11 481 3925                                        
Bruce Walter             Mark Utting                                            
President and CEO        Director, Communications                               
Dynatec Corporation      and Investor Relations                                 
905-780-1980 x339        905-780-1980 x329                                      
Mitsuhiko Yamada         Mitsuru Iba                                            
Corporate Officer        General Manager,                                       
Sumitomo Corporation     Corporate Communications Dept.                         
Issued by sponsor: Deutsche Securities (SA) (Proprietary) Limited               
Date: 11/08/2005 09:02:01 AM              
Produced by the JSE SENS Department