/ 25 November 1997

Anglogold announcement expected on Tuesday

TUESDAY, 10.00AM:

ANGLO American Gold Corporation is expected to announce on Tuesday that it will use its Vaal Reefs mine as the vehicle for its proposed restructuring.

Anglogold’s restructuring plan involves moving all its gold mining assets into a single listed entity in a bid to simplify corporate structure and clarify lines of control, as demanded by overseas investors. The changes will inevitably lead to management cuts at Anglogold mines and further retrenchments of mineworkers.

Another result of the restructuring will involve a deal with black-owned mining company African Rainbow Minerals in which it would acquire Vaal Reefs’ marginal shafts. Rainbow founder Patrice Motsepe’s Future Mining already operates as a mining contractor on several Vaal Reefs shafts.