Anglo American plc ("Anglo American") responds to erroneous media report
21 February, 2003
Anglo American wishes to correct an erroneous media report today relating to a purported loan to the Zimbabwe government.
The transaction outlined below was a purely commercial currency transaction and in no way constituted a loan to the Zimbabwe government or any other entity.
Anglo American Corporation Services Ltd, a subsidiary of Anglo American, acting on behalf of a consortium of exporters (Mimosa Platinum Mines, Makwiro Platinum Mines, ZIMASCO, Cotton Company of Zimbabwe, Ariston Holdings, Bindura Nickel Corporation and Zimbabwe Alloys), entered into a US$35 million currency swap in which the consortium received Zimbabwe dollars in exchange for US dollars generated by export activity.
Exporters have been urgently seeking permission from the Zimbabwean authorities to exchange export earnings at a more commercially viable rate than the official exchange rate and as soon as permission had been received effected the transaction in order to generate funds needed domestically to maintain existing operations and the jobs supported by them.
Currency swaps have been common business transactions in Zimbabwe for the past two and a half years in which fair value is exchanged by the parties involved.
Disclaimer:
The information contained in press releases, annual or interim reports, analyst presentations, and financial information should not be deemed accurate or current except as of the date of issue. Anglo American plc does not, does not intend to, and specifically disclaims any duty to, update or correct such information.