PAM - Palabora - Rio Tinto and Anglo American announce their intention to divest

PAM - Palabora - Rio Tinto and Anglo American announce their intention to divest
their shareholding in Palabora and Cautionary Announcement                      
PALABORA MINING COMPANY LIMITED                                                 
(Incorporated in the Republic of South Africa)                                  
Registration number - 1956/002134/06                                            
JSE Code: PAM        ISIN: ZAE000005245                                         
("Palabora" or "the Company")                                                   
RIO TINTO AND ANGLO AMERICAN ANNOUNCE THEIR INTENTION TO DIVEST THEIR           
SHAREHOLDING IN PALABORA AND CAUTIONARY ANNOUNCEMENT                            
The Board of Palabora Mining Company Limited ("PMC") (the "Board") has been     
informed by the Rio Tinto Group ("Rio Tinto") and Anglo American plc ("Anglo    
American") of their intention to divest their respective shareholdings in PMC.  
The effective interests of Rio Tinto and Anglo American in PMC are 57.7% and    
16.8%, respectively.                                                            
Rio Tinto has initiated a commercial process to sell its shareholding and Anglo 
American will participate in that process.                                      
PMC`s principal asset is a mine in South Africa which produces copper and       
magnetite as joint products. It also owns a vermiculite mine. Studies are       
currently underway to extend the life of the copper operation from 2016 to 2030,
to expand the export magnetite business and to develop domestic magnetite       
supplies for further processing for iron production.  The copper operation is   
not of a scale to suit Rio Tinto or Anglo American`s investment criteria. PMC   
owns a magnetite stockpile and the future value creation at PMC is likely to    
involve the on-site processing and beneficiation of magnetite, an opportunity   
that Rio Tinto and Anglo American believe will be best developed under different
ownership.                                                                      
Any offer for all of Rio Tinto`s effective shareholding in PMC or for all of Rio
Tinto and Anglo American`s effective shareholding in PMC would be an Affected   
Transaction for purposes of the takeover provisions of the Companies Act, 2008  
and, in terms of the mandatory offer provisions, a prospective purchaser would  
need to extend its offer to all shareholders of PMC on the same terms.          
Accordingly, PMC shareholders are advised to exercise caution when dealing in   
the Company`s securities.                                                       
Phalaborwa                                                                      
5 September 2011                                                                
Sponsor: One Capital                                                            
Date: 05/09/2011 07:45:01 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department.                  
The SENS service is an information dissemination service administered by the    
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or            
implicitly, represent, warrant or in any way guarantee the truth, accuracy or   
completeness of the information published on SENS. The JSE, their officers,     
employees and agents accept no liability for (or in respect of) any direct,     
indirect, incidental or consequential loss or damage of any kind or nature,     
howsoever arising, from the use of SENS or the use of, or reliance on,          
information disseminated through SENS.