News Bulletin

Eurasian Natural Resources Purchases 12pc of Northam Platinum Limited for US$300

Thursday, 29 Apr 2010

Eurasian Natural Resources Corporation PLC has announced the purchase of a 12.2% interest in Northam Platinum Limited a major platinum producer in South Africa, from Mvelaphanda Resources Limited, for a cash consideration of ZAR50 per share, equating to a total consideration of ZAR2.2 billion (approximately US$296 million). The cash consideration will be wholly funded from ENRC’s existing resources and the Transaction is expected to be completed in May 2010.

Northam is one of South Africa’s leading platinum producers and is one of only four major platinum group metals mining groups in South Africa with smelting operations, providing it with operational and competitive advantages from mining through processing to marketing.

Commenting on the acquisition, Felix J Vulis, Chief Executive Officer of ENRC, said: “The purchase of the interest in Northam is in line with our stated strategy of diversifying ENRC's commodity portfolio and its geographic exposure. The interest in Northam is a strategic opportunity to invest in one of the largest PGM miners in the world at a time when platinum is expected to benefit from increased demand and to face supply constraints.”

About ENRC
ENRC is a leading diversified natural resources group, performing integrated mining, processing, energy, logistics and marketing operations. The operations of the Group comprise: the mining and processing of chrome, manganese and iron ore; the smelting of ferroalloys; the production of iron ore pellets; the mining and processing of bauxite for the extraction of alumina and the production of aluminium; coal extraction and electricity generation; the transportation and sales of the Group's products; and, the production of copper
and cobalt. ENRC's production assets are largely located in the Republic of Kazakhstan and Africa.

About Northam
Northam is one of South Africa’s leading platinum producers with sales of 333,147 ounces of 3PGE+Au, including 202,141 ounces of platinum, for the year ended 30 June 2009. Northam reported 128.95 million ounces of measured, indicated and inferred 3PGE+Au resources and 8.14 million ounces of proven and probable 3PGE+Au reserves as at 30 June 2009 (JORC compliant resources and reserves). 

Source: ENRC Website April 2010

     

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