Anglo American welcomes the agreement between De Beers and the Government of the Republic of Botswana renewing their partnership for a further 25 years
20 December, 2004
The attention of Anglo American plc (“Anglo American”) shareholders is drawn to the press release by the Government of the Republic of Botswana (“GRB”) and De Beers (attached hereto) noting the renewal of their partnership for a further 25 years from 1 August 2004.
The renewal includes the extension not only of the Jwaneng mining licence for a further period of 25 years but also similar 25 year extensions in respect of the current Orapa, Damtshaa and Letlhakane mining licences. These licences were previously scheduled to expire in 2017. The impact of the licence renewals on Anglo American's headline earnings is not expected to be material.
With effect from the same date, GRB and De Beers have agreed that the effective 15% holding in the equity of DB Investments SA (“DBI”), presently owned by Debswana, will be ceded to and be owned directly by the GRB. Anglo American has hitherto accounted for this indirect 3.65% interest held by Debswana in De Beers as part of its 48.65% effective interest in DBI. Following this restructuring, Anglo American will account only for its direct 45% interest in DBI. Any charge relating to this reduction in its effective holding in DBI will be treated as an exceptional item.
The renewal of all the De Beers mining licences in the Republic of Botswana is a positive development for the long-term growth and success of De Beers as the world's leading diamond producer and reflects the continuation of the partnership between GRB and De Beers.
Notes to Editors:
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 platinum group metals, gold and diamonds, with significant interests in coal, base and ferrous metals, industrial minerals and paper and packaging. The group is geographically diverse, with operations in Africa, Europe, South and North America, Australia and Asia. (www.angloamerican.co.uk)
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