The force majeure period is defined as starting on
ACP repair process and capital expenditure update
The total repair time, including the time to procure all necessary spares and equipment, is estimated at 80 days. The repair team is on site executing the work, and a full investigation is under way to understand the cause and nature of the water ingress into the furnace. The majority of the replacement equipment (i.e. waffle coolers) can either be obtained from the undamaged waffle coolers in the Phase A unit or spares available in inventory. All procurement of additional equipment is from within
A project team is also in place to execute the repairs to Phase A, and orders for the long lead items have been placed. It is still estimated that repairs will be complete by Q2 2021.
The estimated capital expenditure for replacement equipment and repair of ACP Phase B is R150 to R200 million, which will be incurred in 2020, while the estimated capital expenditure to rebuild Phase A will be R500 to R600 million, of which R100 million is expected to be incurred in 2021. These are incremental capital expenditure amounts to full year guidance previously provided but exclude any potential insurance proceeds.
As a result of the activities under way at the ACP, the Company is reviewing its capital plans for 2020 and will provide a further update of the full year capex guidance in due course.
Forward-looking statements
Certain statements made in this announcement constitute forward-looking statements. Forward-looking statements are typically identified by the use of forward-looking terminology such as 'believes', 'expects', 'may', 'will', 'could', 'should', 'intends', 'estimates', 'plans', 'assumes' or 'anticipates' or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of, for example, future production, present or future events, or strategy that involves risks and uncertainties. Such forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company's control and all of which are based on the Company's current beliefs and expectations about future events. Such statements are based on current expectations and, by their nature, are subject to a number of risks and uncertainties that could cause actual production and performance to differ materially from any expected future production or performance, expressed or implied, by the forward-looking statement. The forward-looking statements contained in this report speak only as of the date of this report and the Company undertakes no duty to update any of them and will not necessarily do so, in light of new information or future events, except to the extent required by applicable law or regulation.
Contact:
Tel: +27 (0) 11 373 6239
Email: emma.chapman@angloamerican.com
Notes to editors
The ACP plant is a key part of
Anglo American is a leading global mining company and our products are the essential ingredients in almost every aspect of modern life. Our portfolio of world-class competitive mining operations and undeveloped resources provides the metals and minerals that enable a cleaner, greener, more sustainable world and that meet the fast growing consumer-driven demands of the world's developed and maturing economies. With our people at the heart of our business, we use innovative practices and the latest technologies to discover new resources and mine, process, move and market our products to our customers around the world - safely, responsibly and sustainably.
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