Press Release Archive - 2002

Anglo Coal, international coal producer and a division of Anglo American plc, has announced the sale of its KwaZulu-Natal coal reserves – comprising an estimated 104 million saleable tons – to Leeuw Mining and Exploration (Pty) Ltd (LME), a black empowerment company.

JPI Leeuw and Associates, also a black empowerment company in the property development sector, holds an 80% stake in LME while the management of LME hold
10%. Zimele, Anglo American's business development and empowerment unit, takes a minority investment of 10%. LME benefits from the technical assistance of ATD (the technical services division of Anglo American) and Hatch Africa, an engineering consulting firm. An independent management consultancy, Pricewaterhouse Coopers Corporate Finance (Pty) Ltd, and Zimele have overseen the financial and commercial aspects of the new venture.

Commenting on the transaction, Anglo Coal chairman and CEO Tony Redman says, “The sale of our KwaZulu-Natal reserves to LME is a significant step for both the coal industry and the mining sector as a whole.”

Willy Leeuw, managing director of LME, responds, “It is tremendously exciting for LME as a small-scale mining firm to benefit from the support of an international coal producer such as Anglo Coal as well as the guidance and skills transfer from Zimele and our technical partners.”

“In accordance with the principles of Sustainable Development,” adds Leeuw, “the venture is sensitive to the environmental issues associated with mining. LME will ensure that all mining efforts will comply with national protocols in this regard. Further to this, LME has a social responsibility programme directed at the neighbouring
communities.”

Initial mining and development is currently planned to commence in the last quarter of 2002. Vaalkrantz, an anthracite reserve and part of the Vryheid coalfields, will be mined for its good quality anthracite, while the bituminous coal reserve, Braakfontein (Klip River coalfield), shows potential as a multi-product, opencast and underground mine. The potential of the other reserves sold to LME, notably in the Vryheid, Utrecht and Newcastle areas, are currently being assessed.

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