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OMN - Omnia Holdings - Omnia And Ifc Announce Landmark Carbon Trading

Release Date: 17/03/2008 16:31:13      Code(s): OMN
OMN - Omnia Holdings - Omnia And Ifc Announce Landmark Carbon Trading           
              Transaction Advancing The Global Fight Against Climate Change     
OMNIA HOLDINGS LIMITED                                                          
(Incorporated in the Republic of South Africa)                                  
(Registration number: 1967/003680/06)                                           
JSE Code: OMN                                                                   
ISIN: ZAE000005153                                                              
Omnia and IFC announce landmark Carbon Trading transaction Advancing the global 
fight against climate change                                                    
IFC, a member of the World Bank Group, and Omnia, the diversified, specialist   
chemical services provider with business interests balanced across chemical,    
mining and agricultural markets, today announced an agreement under which IFC   
will purchase up to one million carbon credits from Omnia over the next five    
years, supporting the global fight against climate change. The agreement totals 
an estimated 15m Euros.                                                         
IFC will purchase carbon credits, known as Certified Emission Reductions (CERs) 
from Omnia Fertilizers and sell these on to international buyers. IFC has       
committed to purchase a minimum 50% of all Omnia`s CERs for the next five years 
and will guarantee the delivery of the credits to potential buyers. The Clean   
Development Mechanism of the Kyoto Protocol has established CERs as an asset    
that can be traded in global markets and aims to decouple economic growth from  
greenhouse growth.                                                              
Omnia Fertilizer, through its Sasolburg plant, will generate approximately 420  
000 CERs per annum. The emission reductions will come from a nitrous oxide (N2O)
destruction facility that has been installed by Omnia at its nitric acid plant. 
This destruction facility will significantly reduce the plant`s N2O emissions.  
Greenhouse gas emissions, including Nitrous Oxide, are believed to be the cause 
of global climate change. Omnia announced the approval of the CDM plant in      
August last year, and the plant, which uses German Uhde technology, is now fully
The carbon credits Omnia`s plant will produce are expected to add R60m to the   
Group`s revenue annually, based on the current price of CERs, which is currently
approximately Euro15 per ton. The carbon credits are issued by the Executive    
Board of the Clean Development Mechanism Protocol.                              
Omnia Fertilizer MD, Trevor Grant, said the group was proud to be taking the    
lead in supporting the Kyoto protocol. "The construction of our nitrous oxide   
destruction facility underlines Omnia`s commitment to sustainable development   
and reflects the Group`s focus on improving all areas of our environmental      
management. We believe IFC, with its AAA-rating and experience in the carbon    
trading market, is an ideal partner to assist us in generating strong revenue   
from the carbon credits we will generate".                                      
"IFC places a strong emphasis on environmental and social sustainability and is 
eager to work with companies who want to undertake climate friendly projects and
commercialize carbon assets," said Saleem Karimjee, IFC Manager for Southern    
Africa. "We hope that Omnia`s move will encourage other companies in Africa to  
also reduce their greenhouse gas emissions."                                    
About Omnia                                                                     
Omnia is a diversified, specialist chemical services company providing          
customised solutions in the chemicals, mining and agriculture markets.          
The Group`s ability to provide customised solutions by continually expanding its
base of knowledge has allowed it to match customer needs to product innovation  
and optimal application, placing Omnia at the forefront of the Chemical services
industry in South Africa. The Group continues to strengthen each of its         
businesses and has embarked on a number of innovative projects that will        
significantly impact on improved logistical and raw material efficiencies as    
well and environmental improvements. Omnia has also achieved excellent cross-   
border growth by securing contracts outside of the country.                     
About IFC                                                                       
IFC, a member of the World Bank Group, fosters sustainable economic growth in   
developing countries by financing private sector investment, mobilizing private 
capital in local and international financial markets, and providing advisory and
risk mitigation services to businesses and governments. IFC`s vision is that    
people should have the opportunity to escape poverty and improve their lives. In
FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion       
through syndications and structured finance for 299 investments in 69 developing
countries. IFC also provided advisory services in 97 countries. For more        
information, visit www.ifc.org.                                                 
For more information:                                                           
In Johannesburg                                                                 
Houtan Bassiri                                                                  
(011) 731 3179                                                                  
Brunswick      (011) 502 7406                                                   
Carol Roos     082 490 4182                                                     
Refilwe Mogale                                                                  
BRUNSWICK GROUP LLP                                                             
23 Fricker Road Illovo Boulevard                                                
Johannesburg South Africa                                                       
Telephone             +27 11 502 7300 (sw) ext 417                              
Direct Telephone   +27 11 502 7417                                              
Fax                     +27 11 268 5747                                         
Mobile                 +27 73 607 5444                                          
Date: 17/03/2008 16:31:13 Supplied by www.sharenet.co.za                     
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