savings on zinc smelter site sale

  1. 4,756 Posts.
    Zinc Smelter Site at Avonmouth acq by property devt company

    MIM HOLDINGS LIMITED 2003-05-22 ASX-SIGNAL-G

    HOMEX - Brisbane

    +++++++++++++++++++++++++
    British property development company St Modwen Developments Limited
    has contracted to acquire the site of MIM's now closed zinc smelter
    at Avonmouth, UK.

    The smelter, owned by MIM's wholly owned subsidiary Britannia Zinc
    Limited, was closed in February 2003.

    Closure costs to MIM will be substantially reduced by the transaction
    and a lower than previously expected write-down of working capital.
    This will result in an estimated $41 million writeback of the $113.8
    million closure provisions that were included in MIM's December 2002
    half financial results, and consequent increase of that amount to net
    profit for the June 2003 half year.

    MIM Managing Director Vince Gauci said the transaction was an
    excellent outcome. "It represents a real cash saving to MIM and a
    successful conclusion of the company's strategy of exiting the two
    loss making European zinc smelters - at Avonmouth and last December
    the plant at Duisburg in Germany," he said.

    As part of the transaction, MIM will pay GBP2 million (approximately
    $5 million) to St Modwen for demolition. St Modwen will assume
    environmental responsibility for the site which it has acquired for
    potential future development. The transaction is expected to be
    completed around the end of July following final regulatory
    approvals.


    For further information:

    Media: Investors:
    Collin Myers Allan Ryan
    GENERAL MANAGER CORPORATE AFFAIRS PRINCIPAL ADVISER INVESTOR RELATIONS
    Bus: (61 7) 3833 8285 Bus: (61 7) 3833 8295
    Mobile: 0419 703 145 Mobile: 0419 781 380

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    Fig Jam

    I don't hold MIM
 
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