EVR Evraz Plc

 

TIDMEVR 
 
RNS Number : 4508Q 
Evraz Group S.A. 
09 April 2009 
 

Highveld Enters into a Black Economic Empowerment Transaction 
 
 
April 9, 2009 - Evraz Group (LSE: EVR) ("Evraz" or the "Company") announces that 
its South African subsidiary, Highveld Steel and Vanadium Corporation Ltd. 
("Highveld") concluded an agreement to transfer 26% of the ordinary equity 
interest in Mapochs Mine (Proprietary) Limited ("Mapochs Newco") to local 
partners. This agreement is a part of the Black Economic Empowerment (BEE) 
government program and was signed in order to comply with South African 
legislation for the mining industry. 
 
 
Mapochs Mine, presently an independently managed division of Highveld, will, 
after fulfilment of the conditions described below, be transferred into Mapochs 
Newco, a subsidiary of Highveld. 
 
 
The transaction, which is valued at US$59.8 million, comprises of two parts: 
 
 
  *  the sale of a 23% equity interest in Mapochs Newco to Umnotho Iron and Vanadium 
  (Proprietary) Limited ("Umnotho SPV"), a subsidiary of Umnotho weSizwe Group 
  (Proprietary) Limited; and 
 
 
 
  *  the transfer of a 3% equity interest in Mapochs Newco to the Mapochs Mine 
  Community Trust ("the Community Trust"). 
 
 
 
The parties have agreed on share disposal restrictions and certain empowerment 
status undertakings to secure mutual interests in Mapochs Mine, the BEE 
transaction and the conversion of Highveld's old order mining rights in respect 
of the Mapochs Mine. 
 
 
The BEE transaction is subject to certain conditions, including the conversion 
of the old order mining rights and the consent of the Minister of Minerals and 
Energy for the transfer of the converted new order right to Mapochs Newco. The 
effective date of the BEE transaction will be the later of 1 July 2010 and the 
last business day of the calendar month in which the conditions above are 
fulfilled. 
 
 
* * * 
 
 
About Black Economic Empowerment 
Black Economic Empowerment (BEE) is a program launched by the South African 
government to redress the inequalities of Apartheid by giving previously 
disadvantaged groups economic opportunities previously not available to them. It 
includes measures such as employment equity, skills development, ownership, 
management, socio-economic development and preferential procurement. 
 
 
About Mapochs Mine 
Mapochs Mine produces lumpy titaniferous magnetite ore, which is supplied 
exclusively to Highveld's steelworks, and fines ore, which is supplied 
exclusively to Vanchem Vanadium Products (Proprietary) Limited for the 
production of a variety of vanadium products. 
 
 
About Highveld 
Highveld Steel and Vanadium Corporation Limited (Highveld) is an integrated 
mining, vanadium, and steel producer. It is South Africa's second-largest steel 
maker and a leading vanadium-slag supplier. Highveld is the primary producer of 
medium and heavy structural sections and thick plate in South Africa. Evraz 
holds an 85% equity stake in Highveld. 
 
 
About Umnotho weSizwe 
Umnotho weSizwe Group (Proprietary) Limited is a BEE investment holding company 
with interests in the mining and minerals sector, with strong, proven mining 
experience and expertise. The company has been active in the resource sector 
since its formation in 1997. Its investments span the platinum, diamond, coal, 
chrome and oil and gas sectors, amongst others. The group is a manger and 
developer of its own projects and holds a variety of mining and exploration 
rights in both base and precious metals, which it is in the process of 
exploiting. 
 
 
About Mapochs Mine Community Trust 
The Community Trust was established by Highveld in order to enable the 
communities surrounding the Mapochs Mine to benefit from the broad-based 
socio-economic empowerment ownership initiatives of Highveld. With a key focus 
on upliftment and contribution towards socio-economic development, the 
beneficiaries of the Community Trust will include people from the community 
surrounding the Mapochs Mine, Roossenekal and other major labour-sending areas 
to Mapochs Mine. 
 
 
### 
 
 
 
 
 
 
For further information: 
 
 
Evraz Group 
Investor Relations 
Alexander Boreyko 
Tel: +7 495 232 1370 
IR@evraz.com 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 MSCILFVVSSIAIIA 
 

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