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Restructuring of ARM Coal debt

25 June 2018

ARM and Glencore Operations South Africa Proprietary Limited ("GOSA"), a wholly owned subsidiary of Glencore Holdings South Africa Proprietary Limited ("GHSA"), hold 51% and 49% of the issued share capital in ARM Coal Proprietary Limited ("ARM Coal"), respectively. ARM Coal and GOSA, own and operate the Goedgevonden coal mine operation ("GGV") through an unincorporated joint venture in which ARM Coal and GOSA hold 51% and 49% participation rights, respectively.

GOSA owns and operates several coal mining operations in South Africa referred to as the Participative Coal Business ("PCB"). ARM and ARM Coal’s effective interests in the PCB are 10% and 20%, respectively.

Shareholders are advised that ARM, ARM Coal, GHSA and GOSA have successfully concluded the restructuring of debt:

  1. of R3.98 billion owed by ARM and ARM Coal to GOSA at 30 June 2017 (on an ARM attributable basis); and
  2. of R1.83 billion owed by the PCB to ARM and ARM Coal at 30 June 2017(on an ARM attributable basis).

The restructuring improves ARM and ARM Coal’s obligations in terms of this debt.

Salient features of the restructuring:

  1. debt owed by ARM and ARM Coal to GOSA will accrue interest at a rate of 0% compared to the previous rate, which was at prime, with effect from 1 July 2017 until 31 December 2029;
  2. the maturity date for all debt owed by ARM and ARM Coal to GOSA is extended to 31 December 2029;
  3. all operating cash generated by Goedgevonden Mine (GGV) and the PCB operations, attributable to ARM and ARM Coal, shall be applied in repayment of the debt until the earlier of 31 December 2029 or full repayment of these loans; and
  4. repayments by PCB and ARM Coal to ARM are delayed until after all GOSA debt has been repaid.

Further details of the restructuring will be included in the ARM 2018 provisional results to be released on 7 September 2018.

For all investor relations queries please contact:

Jongisa Magagula
Corporate Development and Head of Investor Relations
Office: +27 11 779 1507
Email: jongisa.magagula@arm.co.za

Johannesburg
25 June 2018

Sponsor: Deutsche Securities (SA) Proprietary Limited

Investor Relations

Jongisa Magagula
Head of Investor Relations and Corporate Development

Tel: +27 (0) 11 779 1300
E-mail: jongisa.magagula@arm.co.za



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