reposseses windimurra - a win for them

XSTRATA ALLOYS AND PRECIOUS METALS AUSTRALIA CONCLUDE
AGREEMENT ON WINDIMURRA TENEMENTS
Perth, 22 April 2005
Xstrata Alloys has reached agreement with Precious Metals Australia Limited (“PMA”) in respect of the
Windimurra vanadium project at Mount Magnet, Western Australia.
The agreement comprises two parts:
• Part A
Xstrata will pay PMA AUD10 million within 14 days, comprising AUD5 million, due to PMA as royalty payments
until the final rehabilitation of the Windimurra site (under a previous agreement between Xstrata and PMA), and
AUD5 million in full and final settlement of all outstanding claims by PMA relating to the Windimurra project.
As a consequence of the above payments, all litigation and claims associated with the closure of the Windimurra
plant and the previous agreement that existed between the parties will be withdrawn, irrespective of the
successful transfer of the Windimurra assets and tenements set out in Part B.
•
Part B
In a separate transaction, Xstrata will sell to PMA the tenements, remaining Windimurra project assets and all
project information on Windimurra, and PMA will assume all obligations associated with the tenements, including
environmental rehabilitation. To facilitate this, Xstrata will transfer the current environmental bonds held over the
property and pay PMA a net amount of up to AUD7.5 million, comprising the estimated total cost of the final
rehabilitation of the site. This transaction is conditional on the transfers being approved and the necessary
releases being obtained from the Western Australian government within the next six months.
Over the next six months Xstrata will continue to rehabilitate the Windimurra site. Following transfer of ownership
to PMA, expenditure associated with this process will be deducted from the AUD7.5 million.
Commenting on the agreement, Peet Nienaber, chief executive of Xstrata Alloys, said: “Following closure of the
Windimurra project, our over-riding concern has been to ensure that the site is fully rehabilitated. In addition,
Xstrata has made it clear that it would release the tenements to any other party acceptable to the government
that would assume full responsibility for the environmental obligations associated with the site. This agreement
represents Xstrata’s final exit from the Windimurra project and transfers all liabilities and any potential opportunity
to exploit the resource to PMA.”
PMA
PRECIOUS METALS
AUSTRALIA LIMITED
A.C.N. 009 131 533
2
Roderick Smith, chief executive of PMA, said, “I am pleased that PMA has reached agreement with Xstrata to
take over the Windimurra project. We are keen to work with Xstrata and the Government of Western Australia to
expedite a rapid transfer of the tenements and to assess the viability of a new vanadium plant at Windimurra.”
ends
Contacts
Claire Bithell
Xstrata plc
Brigitte Mattenberger
Xstrata plc
Telephone +44 20 7968 2871 Telephone +41 41 726 6071
Mobile +44 7785 278294 Mobile +41 793 811 823
Email [email protected] Email [email protected]
The Earl of Warwick (Guy Warrick)
Chairman, Precious Metals Australia Limited
Roderick Smith
Executive Director, Precious Metals Australia Limited
Mobile +61 418 940 713 Mobile +61 418 959 789
Email [email protected] Email [email protected]