MIRA INFORM REPORT

 

 

Report Date :

09.05.2012

 

IDENTIFICATION DETAILS

 

Name :

KUMBA  HONG  KONG  LTD.

 

 

Registered Office :

Room 1901, 19/F., Sun Hung Kai Centre, 30 Harbour Road, Wanchai

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

24.11.1999

 

 

Com. Reg. No.:

30820640

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Mining company like, Iron ore, coal, ferrous and non-ferrous metals, diamonds, etc.

 

 

No. of Employees :

8

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

No complaints

Litigation :

Clear

 


NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – September 30, 2011

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Hong Kong

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


Company nmae

                                                                                    

KUMBA  HONG  KONG  LTD.

 

 

ADDRESS:             1901, 19/F., Sun Hung Kai Centre, 30 Harbour Road, Wanchai, Hong Kong.

 

PHONE:                  2824 0080

 

FAX:                       2845 6635

 

 

MANAGEMENT

 

Managing Director:  Mr. Daniel Malherbe Botes

 

 

SUMMARY

 

Incorporated on:             24th November, 1999.

 

Organization:                 Private Limited Company.

 

Capital: Nominal:           HK$10,000.00

Issued:                          HK$1,100.00

 

Business Category:        Mining company.

 

Group Revenue:             ZAR 48,553 million  (Year ended 31-12-2011)

 

Employees:                   8.

 

Main Dealing Banker:     The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Banking Relation:           Satisfactory.


Company name

 

KUMBA  HONG  KONG  LTD.

 

ADDRESS:

 

Registered Head Office:-

Room 1901, 19/F., Sun Hung Kai Centre, 30 Harbour Road, Wanchai, Hong Kong.

 

Holding Company:-

Kumba International Trading SA, Luxembourg.

 

Intermediate Holding Company:-

Kuma Iron Ore Ltd., South Africa.

 

Ultimate Holding Company:-

Anglo American plc, UK.

 

Associated Companies:-

Groler Investments Ltd., Switzerland.

Kumba Hong Kong Shipping Ltd., Hong Kong.

Kumba International BV, Netherlands.

Kumba International Trading SA, Luxembourg.

Kumba Iron Ore Holdings SARL, Netherlands.

Main Street 576 (Pty) Ltd., South Africa.

Manganore Iron Mining Ltd., South Africa.

Minceo Ltd., Mauritius.

Oreco Leasing Ltd., Mauritius.

Polokwane Iron Ore Co. (Pty) Ltd., South Africa.

Safore (Pty) Ltd., South Africa.

Sibelo Resourcess Developments (Pty) Ltd., South Africa.

Sishen Iron Ore Co. (Pty) Ltd., South Africa.

Sishen Shipping (Pty) Ltd., South Africa.

Sishen South Mining (Pty) Ltd., South Africa.

TransOrient Ore Supplies Ltd., Hong Kong.  [Winding up]

Vulcan Leasing Ltd., Mauritius.

 

 

BUSINESS REGISTRATION NUMBER 

 

30820640

 

 

COMPANY FILE NUMBER

 

0695735

 

 

MANAGEMENT

 

Managing Director:  Mr. Daniel Malherbe BOTES

 

 

CAPITAL

 

Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$1,100.00

 

 

SHAREHOLDER  

 

(As per registry dated 24-11-2011)

Name

 

No. of shares

Kumba International Trading S.A.

48 Rue De Bragance, L-1255 Luxembourg Grand, Duchy of Luxembourg.

 

1,100

====

 

 

DIRECTORS

 

(As per registry dated 01-01-2012)

Name

(Nationality)

 

Address

Robert BROWNLEE

13, Rue Batty Weber, L-8063 Bertrange, Luxembourg.

 

Martin POGGIOLINI

65 Irene Woods, Albert Road, Irene, Pretoria 0157, Gauteng, South Africa.

 

Willem Frederik VAN HEERDEN

 

273 Lawley Street, Waterkloof Pretoria 0181, South Africa.

Phillip Nigel DOBBS

43 Greenland Gardens, 1 Jialin Lu, Chaoyang, Beijing 100016, China.

 

Timotheus Servaas SMIT

13 Rue Nicolas Margues, L-2176 Luxembourg.

 

William Edward SCOTT (Alternate to Willem Fredreik VAN HEERDEN)

 

28 Van Wouw Street, Groenkloof, Pretoria 0181, South Africa.

Sven OLDENDORF

19 Bijou Hamlet, Discovery Bay, Hong Kong.

 

Johan DEETLEFS

Flat C, Block 3, Tai Tam Crescent, 18 Tai Tam Road, Hong Kong.

 

Hugo VAN HEERDEN

Flat B, 4/F., Block 2, Pacific View, 38 Tai Tam Road, Hong Kong.

 

Daniel Malherbe BOTES

37/F., Block G, The Manhattan, 33 Tai Tam Road, Hong Kong.

 

 

SECRETARY

 

(As per registry dated 24-11-2011)

Name

Address

Co. No.

Secreco Ltd.

8/F., Gloucester Tower, The Landmark, 15 Queen’s Road Central, Hong Kong.

0139490

 

 

HISTORY

 

The subject was incorporated on 24th November, 1999 as a private limited liability company under the Hong Kong Companies Ordinance.

Originally the subject was registered under the name of Gold Valley Ltd., name changed to Iscor Hong Kong Ltd.  on 12th April, 2000; and further to the present style on 10th September, 2011.

Apart from these, neither material change nor amendment has been ever traced and noted.

 

OPERATIONS

 

Activities:                      Mining company.

 

Lines:                           Iron ore, coal, ferrous and non-ferrous metals, diamonds, etc.

 

Employees:                   8.

 

Commodities Imported:   South Africa, etc.

 

Markets:                       Worldwide countries.

 

Group Revenue:             ZAR 38,704 million  (Year ended 31-12-2010)

ZAR 48,553 million  (Year ended 31-12-2011)

 

Terms/Sales:                 L/C or as per contracted.

 

Terms/Buying:               As per contracted.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital:               HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

 

Issued Share Capital:                 HK$1,100.00

 

Group Net Profit:                        ZAR 18,289 million  (Year ended 31-12-2010)

ZAR 22,298 million  (Year ended 31-12-2011)

 

Profit or Loss:                            Making a small profit every year.

 

Condition:                                  Keeping in a satisfactory manner.

 

Facilities:                                  Making rather active use of general banking facilities.

 

Payment:                                  Met trade commitments as required.

 

Commercial Morality:                 Satisfactory.

 

Banker:                                     The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Standing:                                  Normal.

 

 

GENERAL

 

Kumba Hong Kong Ltd. is a wholly-owned subsidiary of Kumba International Trading SA which is a Luxembourg-based firm.  The intermediate holding Kumba Iron Ore Ltd. [Kumba] is in South Africa.

The ultimate holding company Anglo American plc [Anglo American/Group] is a UK-based firm.

The subject is a mining company.

Anglo American is one of the world’s largest mining companies.  Its portfolio of high-quality mining assets and natural resources spans bulk commodities – iron ore and manganese, metallurgical coal and thermal coal; base metals – copper and nickel; and precious metals and minerals – in which it is a global leader in both platinum and diamonds.  It operates in Africa, Europe, South and North America, Australia and Asia.

The Headquarters of Anglo American are in London, the United Kingdom.  Currently, it has about 107,000 permanent employees.

The followings are the core commodities of the Group:-

·         Iron ore and manganese

·         Metallurgical coal

·         Thermal coal

·         Copper

·         Nickel

·         Platinum group metals

·         Diamonds

Kumba, a member of the Anglo American plc Group, is a leading supplier of high-quality iron ore to the global steel industry.  With its headquarters in Centurion, South Africa, the Group holds a 73.9% interest in and manages Sishen Iron Ore Co. (Pty) Ltd. [SIOC] which, in turn, has three mining operations:-

·         Sishen mine, located near the town of Kathu in Northern Cape Province;

·         Thabazimbi mine, situated in the town of Thabazimbi in Limpopo Province; and

·         Kolomela mine.

Both the Sishen and Kolomela mines are long-life operations with current life of mine [LOM] estimates of 21 and 27 years respectively.  Thabazimbi mine is reaching the end of its life (planned for 2016), after some 80 years of continuous operation.  The Phoenix project, which is adjacent to Thabazimbi mine, is currently at a feasibility stage.  Subject to board approval, this project will replace production from Thabazimbi mine.

Kumba produced 41.3Mt of iron ore for domestic and export markets in 2011.  The export ore is railed via a dedicated iron ore rail link operated by Transnet Freight Rail [TFR], the national transport utility for rail operations, to the port of Saldanha Bay.

In 2011, Kumba exported 37.1Mt of iron ore from the port of Saldanha Bay to customers in countries and regions around the world, including China (68%), Western Europe (13%), Japan and South Korea (18%) and the Middle East (1%).

Kumba’s South African project pipeline is extensive, with the potential to grow production to 70Mtpa by 2019; Kolomela mine is expected to produce an additional 9Mtpa by 2013 while a further 15Mtpa could come from other Northern Cape Province operations and 5Mtpa from Limpopo Province.

At the end of December 2011, Kumba employed 11,898 people, comprising 6,303 full-time employees and 5,595 full-time contractors.  A further 4,131 fixed-term project contractors were employed on capital expenditure projects during the year.

Kumba, which is listed on the JSE Ltd. [JSE] in South Africa, had a market capitalisation of ZAR 161 billion at 31st December, 2011, the eighth largest company listed on the JSE by market capitalisation.

Kumba’s largest shareholder is Anglo American plc, with a 65.2% interests.

For the year ended 31st December, 2011, the revenue of Anglo American plc was ZAR 48,553 million (2010: ZAR 38,704 million), profit of the year was ZAR 22,298 million (2010: ZAR 18,289 million).  Business has been good.

On the whole, consider the subject good for normal business engagements..

 


DIAMOND INDUSTRY – INDIA

 

-          From time immemorial, India is well known in the world as the birthplace for diamonds.  It is difficult to trace the origin of diamonds but history says that in the remote past, diamonds were mined only in India. Diamond production in India can be traced back to almost 8th Century B.C.  India, in fact, remained undisputed leader till 18th Century when Brazilian fields were discovered in 1725 followed by emergence of S. Africa, Russia and Australia.

-          The achievement of the Indian diamond industry was possible only due to combination of the manufacturing skills of the Indian workforce and the untiring and unflagging efforts of the Indian diamantaires, supported by progressive Government policies.

-          The area of study of family owned diamond businesses derives its importance from the huge conglomerate of family run organizations which operate in the diamond industry since many generations.

-          Some of the basic traits of family run business enterprises include spirit of entrepreneurship, mutual trust lowers transaction costs, small, nimble and quick to react, information as a source of advantage and philanthropy.

-          Family owned diamond businesses need to improve on many fronts including higher standard of corporate governance, long-term performance – focused strategies, modern management and technology.

-          The diamond jewellery industry in India today may be more than Rs 60000 mil and is rated amongst the fastest growing  in the world. Indi ranks third in the world in domestic diamond consumption.

-          Utmost caution is to be exercised while dealing with some medium and large diamond traders which are usually engaged in fictitious import – export, inter-company transactions, financially assisted by banks. In the process, several public sector banks lost several hundred million rupees. They mostly diverted borrowed money for diamond business into real estate and capital markets.

-          Excerpts from Times of India dated 30th October 2010 is as under –

 

DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT

 

This could be the biggest credibility crisis the Indian diamond industry has ever faced. Fifteen banks run the risk of losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two months ago, they had not repaid  these dues. Bankers believe many diamantaires borrowed money during the economic downturn two years ago and diverted funds to businesses like real estate and capital markets. Many of themselves made money from these businesses but their diamond companies have gone sick and declared insolvency.

-          Most of the money borrowed from the banks in the name of their diamond business has been diverted in real estate and the share market. The banks are not in a position to seize their properties because in many cases, these were purchased in the name of their relatives and friends.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.52.85

UK Pound

1

Rs.85.44

Euro

1

Rs.68.80

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.