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Gold/Mining/Energy : RANDGOLD and EXPLORATION (RANGY) -- Ignore unavailable to you. Want to Upgrade?

To: big guy who wrote (371)	5/7/1999 10:20:00 PM
From: baystock	Read Replies (1) \| Respond to of 448

Randgold Proposes S. African Miners Pool Unused Mineral Rights quote.bloomberg.com Johannesburg, May 4 (Bloomberg) -- Randgold & Exploration Co. said it and other South African mining companies plan to set up a new company to hold and sell unused mineral rights which the government has threatened to revoke if they aren't exploited. Many South African mining companies hold mineral rights they are unlikely to use in the foreseeable future. Anglo American Platinum Corp. holds the rights to enough reserves to operate at current output for 300 years, while Samancor Ltd., a ferroalloys joint venture between Anglo and Billiton Plc, has enough to keep going for 180 years, analysts have said. In October, Penuell Maduna, South Africa's Minister of Minerals and Energy, said his government will pass laws to compel holders of idle mineral rights to sell or give these up to those willing to use them in a bid to boost South Africa's mineral output, create jobs and increase black ownership in South Africa's mining industry. ''It could generate (new) small mining companies,'' said David Hall, an analyst at Merill Lynch. ''It could generate value for shareholders.'' Shares in the new company, provisionally called Minrico, will be issued based on the value of the mineral rights each contributor deposits, said Roger Kebble, Randgold's chairman. So far, Randgold has approached companies including Anglo American Corp. of South Africa Ltd. and Gold Fields of South Africa Ltd. with a view to establishing Minrico, which could also include mineral rights held by individuals and non-mining companies, said Kebble. He said Randgold has also spoken to Maduna. Minrico would simplify a merger Randgold is contemplating with seven other gold companies as there would no longer be a need to manage the mineral rights, said Kebble. Randgold is mining about 80 percent of the 1 million hectares it holds mineral rights to, he said.