/ 20 October 2004

Anglo, Kumba look at Australian mining deal

Anglo American plc and its South African subsidiary Kumba Resources on Wednesday announced that Anglo Coal Australia (Anglo Coal) and Kumba Australia (Kumba) have signed a heads of agreement (HoA) that could lead to the development of a major coking coal mine in central Queensland, Australia.

The HoA covers the investigation into the joint development of Kumba’s Moranbah South Mining Development Lease (MDL) in combination with the southern portion of Anglo Coal’s adjacent Grosvenor lease.

These areas are located to the south of the township of Moranbah in the Bowen Basin coalfield of central Queensland.

The coalfield hosts extensive, high-grade coking coal resources that already support several large mining operations, including the nearby Anglo Coal mine of Moranbah North.

Kumba inherited its Moranbah South MDL from Iscor, which conducted exploration of the property during the 1990s, prior to the separation of its mining interests in 2001 to form Kumba.

An extensive exploration and evaluation programme, to be funded by Anglo Coal as part of the HoA, will start immediately, leading to the development of a feasibility study. — I-Net Bridge