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Release Date: 25/06/2018 13:50
Code(s): ARI     PDF:  
Wrap Text
Restructuring of ARM Coal debt

African Rainbow Minerals Limited
(Incorporated in the Republic of South Africa)
(Registration number 1933/004580/06)
JSE Share code: ARI
ISIN: ZAE000054045
(“ARM” or the “Company”)


ARM and Glencore Operations South Africa Proprietary Limited
(“GOSA”), a wholly owned subsidiary of Glencore Holdings South Africa
Proprietary Limited (“GHSA”), hold 51% and 49% of the issued share
capital in ARM Coal Proprietary Limited (“ARM Coal”), respectively.
ARM Coal and     GOSA,    own and operate the Goedgevonden coal mine
operation (“GGV”) through an unincorporated joint venture in which
ARM Coal and GOSA hold 51% and 49% participation rights, respectively.

GOSA owns and operates several coal mining operations in South Africa
referred to as the Participative Coal Business (“PCB”). ARM and ARM
Coal’s effective interests in the PCB are 10% and 20%, respectively.

Shareholders are advised that ARM, ARM Coal, GHSA and GOSA have
successfully concluded the restructuring of debt:

1.    of R3.98 billion owed by ARM and ARM Coal to GOSA at 30 June 2017
      (on an ARM attributable basis); and
2.    of R1.83 billion owed by the PCB to ARM and ARM Coal at 30 June
      2017(on an ARM attributable basis).

The restructuring improves ARM and ARM Coal’s obligations in terms
of this debt.

Salient features of the restructuring:

1.   debt owed by ARM and ARM Coal to GOSA will accrue interest at a
     rate of 0% compared to the previous rate, which was at prime,
     with effect from 1 July 2017 until 31 December 2029;

2.   the maturity date for all debt owed by ARM and ARM Coal to GOSA
     is extended to 31 December 2029;

3.   all operating cash generated by Goedgevonden Mine (GGV) and the
     PCB operations, attributable to ARM and ARM Coal, shall be applied
     in repayment of the debt until the earlier of 31 December 2029
     or full repayment of these loans; and

4.   repayments by PCB and ARM Coal to ARM are delayed until after all
     GOSA debt has been repaid.

Further details of the restructuring will be included in the ARM 2018
provisional results to be released on 7 September 2018.


For all investor relations queries please contact:

Jongisa Magagula
Corporate Development and Head of Investor Relations
Tel:       +27 11 779 1507

25 June 2018

Sponsor: Deutsche Securities (SA) Proprietary Limited


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