ArcelorMittal and Mrs Daphne Mashile-Nkosi are pleased to announce that a definitive agreement has been reached whereby Mrs Mashile-Nkosi, or her nominee (which may be a consortium consisting of some of the existing Kalahari Resources shareholders and / or other third parties), will acquire ArcelorMittal's 50% interest in Kalagadi Manganese ("the transaction"). ArcelorMittal will receive a cash consideration of not less than R3.9 billion (three billion nine hundred million South African Rand), which is approximately US$447 million, on closing of a sale and purchase agreement ("SPA"). The proposed transaction will be subject to financing arrangements.
The SPA was executed on 14 November 2012, and on completion of the transaction Kalahari Resources will hold 40% interest in Kalagadi Manganese, Mrs Mashile-Nkosi, or her nominee, will hold 50% with the remaining 10% interest held by the Industrial Development Corporation of South Africa Limited. Completion of the proposed transaction will also be subject to the waiver of preemptive rights of the other shareholders, customary corporate approvals and various regulatory approvals.
Contact information ArcelorMittal Investor Relations
Europe: +352 4792 3198
Americas: +1 312 899 3569
Retail: +44 203 214 2417
SRI: +44 203 214 2854
Bonds/Credit: +33 171 92 10 26
Contact information ArcelorMittal Corporate Communications
Phone: +352 4792 5000
ArcelorMittal Corporate Communications
Giles Read (Head of Media Relations) +44 20 3214 2845
Tobin Postma +44 20 3214 2412
+27 11 268 0616
The Communications Firm on behalf of Kalahari Resources
Director: Corporate Communications
+27 11 463 7550
ArcelorMittal is the world's leading steel and mining company, with a presence in more than 60 countries.
ArcelorMittal is the leader in all major global carbon steel markets, including automotive, construction, household appliances and packaging, with leading R&D and technology. The Group also has a world class mining business with a global portfolio of over 20 mines in operation and development, and is the world's 4th largest iron ore producer. With operations in over 22 countries spanning four continents, the Company covers all of the key industrial markets, from emerging to mature, and has outstanding distribution networks.
Through its core values of sustainability, quality and leadership, ArcelorMittal commits to operating in a responsible way with respect to the health, safety and well-being of its employees, contractors and the communities in which it operates. It is also committed to the sustainable management of the environment. It takes a leading role in the industry's efforts to develop breakthrough steelmaking technologies and is actively researching and developing steel-based technologies and solutions that contribute to combat climate change. ArcelorMittal is a member of the FTSE4Good Index and the Dow Jones Sustainability World Index.
In 2011, ArcelorMittal had revenues of $94.0 billion and crude steel production of 91.9 million tonnes, representing approximately 6 per cent of world steel output. The Group's mining operations produced 54 million tonnes of iron ore and 8 million tonnes of metallurgical coal.
ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), and Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).
For more information about ArcelorMittal visit: www.arcelormittal.com
About Kalahari Resources
Kalahari Resources was started with the injection by Daphne Mashile Nkosi, Executive Chairperson, of R12 million into the project to complete the pre-feasibility study.
Kalahari Resources, a majority black-owned company in which women occupy the top positions, was founded in 2001 as the result of new mining legislation that gave historically disadvantaged individuals the opportunity to participate in the mainstream economy.
The company's equity is held by more than nine companies, which brings together a range of women groups, entrepreneurs and beneficiaries.
This Company was established with the intention of gaining access to manganese resources in the Kalahari Manganese Basin. This was achieved in 2005 when the company was granted a license to prospect for manganese in the Kalahari Basin, specifically on the farms Gama, Olivepan and Umtu.
About Kalagadi Manganese
Kalagadi Manganese is a South African manganese player engaging in the exploration and production of manganese in the Kalahari Manganese basin, Northern Cape Province, South Africa. The company is jointly held by ArcelorMittal (50%), Kalahari Resources (40%) and the Industrial Development Corporation (10%). The three farms on which the company holds new order mining rights are believed to overly some 960 million tons of manganese ore. The recent exploration programme has identified 102 million tons of Mineral Resources.
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(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: ArcelorMittal S.A. via Thomson Reuters ONE