Annexure 2: Investments in associates, joint ventures and other investments


	Nature of		Country
	business	¹	of incor-		Number of
			poration	²	shares held


Associated companies
Unlisted
Chifeng Kumba Hongye Zinc Corporation Limited	A & M		CH		92 400 000
Manganore Iron Mining Limited³	A		RSA		25 000
Sishen Iron Ore Company (Pty) Limited	A		RSA		240 000 000
Total associated companies (note 17)
Joint ventures
Incorporated
Unlisted
Inyanda Coal (Pty) Limited⁴	A		RSA		500
Pietersburg Iron Company (Pty) Limited³	A		RSA		4 000
RoshSkor Township (Pty) Limited	C		NAM		50
Safore (Pty) Limited³	B		RSA		400
Sibelo Resources Development (Pty) Limited³	E		RSA		1
Sishen Shipping (Pty) Limited³	B		RSA		400
South Dunes Coal Terminal Company (Pty) Limited	A		RSA		1 333
Thakweneng Mineral Resources (Pty) Limited	E		RSA		1
Trans Orient Ore Supplies (Pty) Limited³	D		HK		2 000

Unincorporated
Bridgetown Dolomite Mine⁵	A
Tiwest	A

Total associated companies (note 17)
Investment companies
Listed
Mineral Deposits Limited	A		AUS		11 299 435
Unlisted
Other
Total other investments (note 19)
Total investments
The investments are valued at balance sheet date. Listed shares are valued at market value
and unlisted shares at directors’ value.
Unlisted investments in associates
– directors’ valuation
Listed other investments
– market value
Unlisted other investments
– directors’ valuation
Where the above entities’ financial year-ends are not coterminous with that of the company, financial information has been obtained from published information or management accounts as appropriate.

						Year-end
		Group		Company		other than
Percentage holding		carrying amount		carrying amount		31 December
			Restated		Restated
2006	2005	2006	2005	2006	2005
%	%	Rm	Rm	Rm	Rm


31,91	30,62	161	93
	50,00					30 June
20,00		223
		384	93



	50,00
	50,00
50,00	50,00
	40,00
	50,00		1
	40,00
33,33	33,33		1
50,00
	50,00
			2

	50,00					28 February
50,00	50,00

			2


3,78	5,85	92	60

		93	35	34	28
		185	95	34	28
		569	190	34	28



		4 812	130

		92	60

		93	35

1	A – Mining, B – Shipping charter, C – Service, D – Iron ore merchant, E – Exploration, M – Manufacturing.
2	RSA – Republic of South Africa, CH – China, HK – Hong Kong, NAM – Namibia, AUS – Australia
3	Unbundled as part of the iron ore business unit.
4	The joint venture was reclassified as a subsidiary on acquisition of Eyesizwe Coal (Pty) Limited, the joint venture partner of the investment, and is consequently consolidated.
5	Proportionately consolidated until date of disposal being 31 August 2006.

The group’s effective share of balance sheet, income statement and cash flow items in respect of associated companies and joint ventures are as follows:

	Associated	Associated	Joint	Joint
	companies	companies	ventures	ventures
		Restated		Restated
	2006	2005	2006	2005
	Rm	Rm	Rm	Rm
INCOME STATEMENTS
Revenue	1 072	400	1 082	1 089
Operating expenses	(890)	(389)	(904)	(768)
Net operating profit	182	11	178	321
Net financing (costs)/income	(9)	(1)	10	1
Profit before taxation	173	10	188	322
Taxation	(47)	(2)	(1)	(1)
Profit after taxation	126	8	187	321
Outside shareholders’ interests		(1)
Net profit attributable to
ordinary shareholders	126	7	187	321
BALANCE SHEETS
Non-current assets	907	90	1 473	1 191
Current assets	840	133	1 092	943
Total assets	1 747	223	2 565	2 134
Equity and liabilities
Ordinary shareholders’ equity	377	100	2 215	1 827
Minority interest		2
Non-current liabilities
Interest-bearing borrowings	594	12	26	1
Non-current provisions	31		132	105
Deferred taxation and other	132	2	16	2
Current liabilities
Interest-bearing borrowings	269	20	1	1
Other	344	87	175	198
Total equity and liabilities	1 747	223	2 565	2 134

	Associated	Associated	Joint	Joint
	companies	companies	ventures	ventures
		Restated		Restated
	2006	2005	2006	2005
	Rm	Rm	Rm	Rm
CASH FLOW STATEMENTS
Net cash flows from operating activities	(587)	(5)	235	306
Net cash flows from investing activities	(104)	(2)	(18)	(61)
Net cash flows from financing activities	861		(209)	(138)
Foreign currency translations	(13)	1	(11)	3
Net increase/(decrease) in cash and
cash equivalents	157	(6)	(3)	110

Notes:
1.	Manganore Iron Mining Limited was equity accounted until 31 October 2006. For 2006 only the ten months from January 2006 to 31 October 2006 were included.
2.	Sishen Iron Ore Company (Pty) Limited was equity accounted from the first of November 2006. For 2006 only the two months from November 2006 to December 2006 were included. Prior to unbundling Sishen Iron Ore Company (Pty) Limited was a subsidiary.
3.	Bridgetown was proportionately consolidated until 31 August 2006.
4.	The following entities were only proportionately consolidated until 31 October 2006:
	•	Pietersburg Iron Company (Pty) Limited
	•	Safore (Pty) Limited
	•	Sishen Shipping (Pty) Limited
	•	Trans Orient Ore Supplies (Pty) Limited
	•	Inyanda Coal (Pty) Limited
	•	Sibelo Resources Development (Pty) Limited

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Annexure 2: Investments in associates, joint ventures and other investments

Nature of

Country

business

1

of incor-

Number of

poration

2

shares held

Associated companies

Unlisted

Joint ventures

Incorporated

Unincorporated

Investment companies

Listed

Total investments

Year-end

Group

Company

other than

Percentage holding

carrying amount

carrying amount

31 December

Restated

Restated

2006

2005

2006

2005

2006

2005

%

%

Rm

Rm

Rm

Rm

Associated

Associated

Joint

Joint

companies

companies

ventures

ventures

Restated

Restated

2006

2005

2006

2005

Rm

Rm

Rm

Rm

INCOME STATEMENTS

BALANCE SHEETS

Associated

Associated

Joint

Joint

companies

companies

ventures

ventures

Restated

Restated

2006

2005

2006

2005

Rm

Rm

Rm

Rm

CASH FLOW STATEMENTS

¹

²