AFRICAN RAINBOW MINERALS LIMITED - African Rainbow Minerals Impact of Covid-19 on Business

African Rainbow Minerals Impact of Covid-19 on Business

African Rainbow Minerals Limited
(Incorporated in the Republic of South Africa)
(Registration number 1933/004580/06)
JSE Share code: ARI
ISIN: ZAE000054045
(“ARM” or the “Company”)

AFRICAN RAINBOW MINERALS BUSINESS UPDATE AND IMPACT OF COVID-19

ARM refers shareholders to the SENS announcement released on 24
March 2020.

The safety and wellbeing of all ARM employees and contractors
remains a priority in ARM’s response to the evolving COVID-19
global pandemic.

In compliance with the nationwide lockdown, all ARM mining
operations including Khumani, Beeshoek, Black Rock, Modikwa, Two
Rivers and Nkomati mines have been placed on temporary care and
maintenance for the duration of the lockdown period.

All activities at Machadodorp Works have been suspended. Cato
Ridge Works has switched off its furnaces and converter. The Sakura
Ferroalloys operation located in Malaysia remains in full
operation in accordance with local Malaysian regulations.

ARM Coal operations supply coal to Eskom and are considered
essential to the maintenance of power generation in South Africa.
These operations continue to operate in terms of the lockdown
regulations, and in terms of the guidelines issued by the
Department of Mineral Resources and Energy to continue to supply
Eskom. Any export of coal will need to be approved by the
Department of Mineral Resources and Energy and will be subject to
the availability of rail capacity.

Necessary care and maintenance work will continue at all affected
operations to ensure that integrity of assets is maintained and
to ensure a safe and efficient ramp up after the lockdown.

Additional safety, health and hygiene provisions are in place to
protect the wellness of employees that continue to work during the
lockdown.

In addition to the above, Two Rivers Mine received notice of force
majeure from Impala Platinum Limited (Impala). In terms of this
notice, Impala indicated that for the duration of the lockdown
period it will not be able to receive concentrate in terms of the
agreement whereof Impala purchases concentrate as delivered by Two
Rivers Mine.
                                                                
Management does not anticipate this notice will have any
additional negative impact over and above the impact of the
temporary care and maintenance described above.

We remain committed to preventing the spread of COVID-19 and to
South Africa’s return to social and economic stability. Under no
circumstances will the safety of our employees be compromised.

ARM’s robust financial position gives us flexibility to
responsibly navigate this period of uncertainty and ensure ARM’s
long term sustainability.


ENDS

For all investor relations queries please contact:

Jongisa Magagula
Executive   Director:  Investor  Relations   and     New   Business
Development
Tel:      +27 11 779 1507
E-mail:   jongisa.magagula@arm.co.za
Johannesburg
27 March 2020
Sponsor: Investec Bank Limited


Date: 27-03-2020 05:00:00
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