Stmt re Chambishi Metals PLC

Anglovaal Mining Ld
30 January 2002

                            Anglovaal Mining Limited
                 (Incorporated in the Republic of South Africa)
                      (Registration number 1933/004580/06)
                      (Share code: AIN ISIN: ZAE000017141)
                           ('Avmin' or 'the Company')



             Partial write-down of Avmin's Chambishi metals assets



1. Introduction

Further to Avmin's announcement on 18 December 2001, the Board of Directors
('the Board') has considered a detailed analysis of the future prospects of
Chambishi Metals plc ('Chambishi') and reviewed this investment in the context
of the Avmin Group ('the Group') as a whole.

Avmin is a South African based diversified mining company with interests in the
ferrous, precious and base metals sectors. Its ferrous metal assets, held in
Assmang Limited ('Assmang') include iron ore, manganese ore, ferro-manganese,
chrome ore and ferro-chrome. The precious metals assets held through Avgold
Limited ('Avgold'), comprise the Target and ETC gold mines, and the Company is
conducting a full feasibility programme on its new platinum group metals ('PGM')
operation, Two Rivers Platinum (Pty) Limited ('Two Rivers') in partnership with
Impala Platinum Holdings Limited. Within its base metals unit, Avmin operates
South Africa's only primary nickel mine, Nkomati, and the cobalt and copper
producer, Chambishi, located in Zambia.

2. Chambishi write-down

The Board has fully assessed the impact of the various technical problems that
have been experienced at Chambishi, which relate largely to the furnace
refractory lining, the furnace cooling system and the effects of an unexpected
decline of the cobalt price from US$10/lb to US$7/lb, as well as weaker economic
fundamentals for base metal markets, exacerbated by the tragic events of 11
September 2001. In order to account for these changed circumstances in
accordance with the Company's commitment to prudent and conservative accounting
practices, the Board has made a decision to write-down R1 538 million in
relation to these assets. This amount is determined as follows:


  • A US$176 million write-down on the Chambishi assets; with Avmin's shares
    equating to

  • US$172 million* (R1 978 million)

  • Less R440 million, being the foreign exchange gain due to Avmin from
    Chambishi;

  • Resulting in a net amount of R1 538 million.

  • Calculated at R11,50 : US$1,00.

The residual value of US$70 million is deemed reasonable and appropriate by the
Board and the Company's independent auditors, who have verified the assumptions
and the calculations.

3. Financial effects

The Financial Effects of the write-down at 30 June 2001 are as follows:
                                                                                                           % change
                                                                          Before           After          increase/
                                                                         (cents)         (cents)         (decrease)
Headline earnings per share ('HEPS')                                         259             259                  -
Earnings per share ('EPS')                                                   259         (1 022)                N/A
Fully diluted headline EPS                                                   251             251                  -

The above financial effects are based on the following:


  • Headline EPS, EPS and fully diluted headline EPS in the 'Before' column
    reflect headline EPS, EPS and fully diluted headline EPS for the year ended
    30 June 2001.

  • Headline EPS and fully diluted headline EPS in the 'After' column reflect
    headline EPS and fully diluted headline EPS for the year ended 30 June 2001,
    as the write-down of Chambishi assets is an exceptional charge.

  • EPS in the 'After' column reflects the exceptional once-off nature of the
    write-down of the Chambishi assets, and the reason for its exclusion from
    headline EPS. (Exchange rate effects since 30 June 2001 have been ignored.)

  • NAV in the 'Before' column reflects the NAV as at 30 June 2001. NAV in the
    'After' column reflects the pro forma effect of the write-down of Chambishi
    assets on the NAV.

4. Chambishi now focused on achieving full production

Avmin's Board and management continue on the basis that Chambishi is viable and
are committed to complete the remaining work on the project, the Company is
confident that the plant will be in full production by the end of the 2002
calendar year.

5. Avmin's enhanced Group value

Over the last six months, the value of the majority of assets within Avmin have
been enhanced as a result of the weaker rand, US dollar exchange rate and the
completion of major projects, together with ongoing improvements in operating
performances and strong growth possibilities in the pipeline:


  • Assmang - all divisions within this company, which exports the majority of
    its commodities, are benefiting from improved operating performances in
    terms of production volumes and good cost containment; the significant new
    ferro-chrome expansion that was officially opened today, 29 January 2002,
    has been commissioned on schedule and within budget and is set to benefit
    from the improved environment; while its new manganese shaft expansion
    remains on schedule for completion in 2003.

  • Nkomati - an improving nickel price and better than planned PGM prices are
    all factors contributing to value enhancements for the existing mine and has
    made the significant expansion project more robust.

  • Avgold - costs are being well contained and its major new gold mine,
    Target, has been commissioned ahead of schedule and within budgeted cost
    with lower US dollar operating costs now possible.

  • The value of the low-risk Two Rivers project is more robust and shows
    considerable upside.

In addition, Avmin's strategy of strengthening its balance sheet through the
disposal of its investment in Iscor Limited and shares in Assore Limited as well
as a small number of shares in Avgold, has reduced planned gearing and interest
charges. The Group balance sheet remains strong with cash on-hand, as at the
date of this announcement, of nearly R500 million, which is expected to increase
materially by the end of the financial year.

Despite the write-down, the Board is confident that the value being created by a
weaker rand and improved operating performances in its South African operations
will more than offset this decrease.

Johannesburg
29 January 2002

Sponsor

Deutsche Securities

Member of the Deutsche Bank Group

Deutsche Securities (SA) (Proprietary) Limited

(Registration number 1995/011798/07)



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