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Bhp Billiton Plc/ Anglo American Plc - Joint Expansion - Ingwe And Anglo Coal
Release Date: 20/05/2004 08:27:09 Code(s): BIL AGL
BHP Billiton plc/ Anglo American plc - Joint expansion - Ingwe and Anglo Coal
BHP Billiton plc
JSE Share Code: BIL
ISIN: GB000056504
Anglo American plc
(Incorporated in the United Kingdom)
Registration number: 3564138
JSE Share code: AGL
ISIN: GB0004901517
BHP Billiton and Anglo American plc announce proposed joint expansion of coal
resources in the Western Complex, South Africa
BHP Billiton and Anglo American plc (`Anglo American`) jointly announced today
that they have entered into a Memorandum of Understanding enabling BHP
Billiton`s Ingwe Collieries Limited (`Ingwe`) and Anglo American`s Anglo Coal to
investigate a proposed expansion of adjacent coal resources in the Western
Complex, South Africa, incorporating the development of BHP Billiton`s proposed
US$280 million Klipspruit Project.
Subject to the outcome of the investigation it is proposed to establish the
Western Complex as a joint venture company managed by Ingwe and Anglo Coal.
The investigation will include a review of the parties` coal assets in the Ogies
area (some 100 kilometres east of Johannesburg), in particular Ingwe`s mines at
Khutala and Klipspruit and the Weltevreden coal resources and Anglo Coal`s coal
resources at Zondagsfontein, Smaldeel and Beesting.
The investigation, which is expected to take several months to complete, will
include a due diligence review of the parties` coal assets, followed by a
feasibility study, with final approval for an expansion from the Boards of BHP
Billiton and Anglo American. Included in the feasibility process will be the
introduction of suitable Black Economic Empowerment (BEE) partners.
Should the proposed expansion prove viable, the establishment of the Western
Complex will be an important development for the South African coal industry and
could provide long term coal supplies to Eskom, South Africa`s power utility, as
well as to the export market.
For further information:
BHP Billiton:
http://www.bhpbilliton.com
AUSTRALIA UNITED KINGDOM
Tracey Whitehead, Investor Relations Mark Lidiard, Investor & Media
Tel: +61 3 9609 4202 Relations
Mobile: +61 419 404 978 Tel: +44 20 7802 4156
email: Tracey.Whitehead@bhpbilliton.com email: Mark.Lidiard@bhpbilliton.com
Tania Price, Media Relations Ariane Gentil, Media Relations
Tel: +61 3 9609 3815 Tel: +44 20 7802 4177
Mobile: +61 419 152 780 email: Ariane.Gentil@bhpbilliton.com
email: Tania.Price@bhpbilliton.com
UNITED STATES SOUTH AFRICA
Francis McAllister, Investor Relations Michael Campbell, Investor & Media
Tel: +1 713 961 8625 Relations
Mobile: +1 713 480 3699 Tel: +27 11 376 3360
email: Mobile: +27 82 458 2587
Francis.R.McAllister@bhpbilliton.com email:
Michael.J.Campbell@bhpbilliton.com
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
Notes to Editors:
Ingwe own and/or operate in the Ogies area:
Khutala mine: an underground and opencut mine producing 15 million tonnes per
annum for sale to Eskom. It has 1 400 employees. Should the proposed expansion
prove viable it is expected that the service contracts of Khutala employees
would transfer to the Western Complex;
Klipspruit Project: at present a mini pit, with a larger mine development
planned to 6 million tonnes per annum via an opencast dragline operation, at an
estimated cost of US$280 million for mine development, coal processing plant and
rail infrastructure, currently in the last stages of feasibility study.
Weltevreden: coal resources.
Anglo Coal`s assets in the area are the coal resources at Zondagsfontein,
Smaldeel and Beesting.
BHP Billiton is the world`s largest diversified resources company with some 35
000 employees working in more than 100 operations in approximately 20 countries.
BHP Billiton is distinguished from other resource companies by the quality of
its assets; deep inventory of growth projects; customer-focused marketing;
diversification across countries, commodities and markets; and its Petroleum
business.
Reflecting its aim to be a premier global company, BHP Billiton occupies
industry leader or near industry leader positions in major commodity businesses,
including aluminum, energy coal and metallurgical coal, copper, ferro-alloys,
iron ore and titanium minerals, and have substantial interests in oil, gas,
liquefied natural gas, nickel, diamonds and silver.
Anglo American plc is one of the world`s largest mining and natural resource
groups. With its subsidiaries, joint ventures and associates, it is a global
leader in gold, platinum group metals and diamonds, with significant interests
in coal, base and ferrous metals, industrial minerals and paper and packaging.
The group is geographically diverse, with operations and developments in Africa,
Europe, South and North America, Australia and Asia. (www.angloamerican.co.uk).
20 May 2004
Ends
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