Minorco S.A. - Subsid's Acquisition

RNS No 4945h
MINORCO S.A.
22nd January 1999


MONDI MINORCO PAPER BUYS AMCOR FIBRE PACKAGING EUROPE

Minorco announced today that its subsidiary, Mondi Minorco Paper (MMP), has
reached agreement to acquire the UK and French corrugated packaging business
Amcor Fibre Packaging Europe (AFP) from Australian based Amcor Limited.  The
total debt free cash consideration is #145 million plus a variable payment of
up to #7 million dependent on the results of the business to June 1999.

MMP is 60% owned by Minorco with the balance of the shares owned by Anglo
American Corporation of South Africa (AAC) and Mondi Limited (Mondi).  Mondi,
which is a member of the AAC group, is a large fully integrated forest
products business in South Africa producing corrugated case materials and
packaging.

AFP is a leading UK corrugated packaging group, producing a full range of
corrugated products.  The business comprises 15 plants in the UK and 6 plants
in France.  In the UK there are 2 integrated corrugated plants (producing
corrugated board and boxes), at March in Cambridgeshire and Mold in North
Wales; 2 corrugated sheet feeder plants (producing corrugated board) at
Coalville in Leicestershire and Preston in Lancashire; and 11 sheet converting
plants (producing corrugated boxes) throughout the UK.  This extensive network
of plants in the UK results in good coverage of the UK market giving AFP a 10%
market share.  In France AFP comprises an integrated box plant at St. Quentin,
north east of Paris and 5 sheet converting plants in central and northern
France.

AFP currently produces 536 million m2 of corrugated board and has the capacity
to produce up to 750 million m2 of corrugated packaging annually.  Sales in
the year to June 1998 amounted to #177 million.  Capital expenditure of #77
million has been invested in the business over the last 5 years, resulting in
some of the most modern facilities in Europe which will enable the business to
take advantage of future growth.  The business has 1 600 employees including
an experienced management team.  No redundancies are anticipated as a result
of this acquisition.

It is expected that this acquisition will be earnings enhancing for MMP in the
short term, with significant upside potential due to the under-utilised modern
plant.

MMP currently has investments in a number of packaging businesses in Europe,
including a 50% interest in Frantschach Packaging, which is the largest paper
sack producer in Europe.  The most recent packaging investment undertaken by
MMP and Frantschach Packaging was the acquisition in 1997 of a majority
interest in Celuloza Swiecie S.A., the largest pulp and paper manufacturer in
Poland.  Swiecie is a large producer of corrugated case materials, a small
portion of which is supplied to its own converting plant, with the balance
sold on the open market.  Mondi, in South Africa, is also a large producer of
corrugated case materials with a high level of exports to Europe.

This acquisition will provide forward integration potential for MMP's
corrugated case material production and is in line with its strategy to
develop a position as a leading integrated corrugated packaging producer in
Europe. 

The acquisition is subject to EU clearance and is expected to be completed in
approximately 1 month.

Notes to the Editor :
OVERVIEW OF MONDI MINORCO PAPER (MMP)
MMP has proportionately consolidated turnover of US$1 042 million (1997) and
consists of the following : -
* a 50% interest in, and joint control of, Frantschach AG (Austria) producing
280 000 tons of pulp, 200 000 tons of packaging paper and 1 120 million paper
sacks per annum;
* a 74.5% interest in Neusiedler AG (Austria) which produces 450 000 tons of
graphic paper per annum;
* jointly with Frantschach, a 60% interest in Celuloza Swiecie S.A. (Poland)
producing 500 000 tons of packaging paper and 140 million paper sacks per
annum;
* a 50% interest in Aylesford Newsprint Ltd (UK) which produces 370 000 tons
of recycled newsprint per annum; and
* a 11.8% equity interest (28% voting interest) in Aracruz Celulose (Brazil)
producing 1.2 million tons of bleached eucalyptus kraft pulp per annum.

Mondi Limited has turnover of US$1 109 million (1997) and has 8 operating
divisions in South Africa producing the following products :
Packaging Papers       -       500 000 tons per annum
Graphic Papers         -       500 000 tons per annum
Pulp                   -       350 000 tons per annum
Solid Wood Products    -       1 130 000 tons per annum
Wood Chips             -       1 000 000 tons per annum


Further enquiries:
Mondi Minorco Paper (London)
Keith Jackson
+ 44 171 430 8667

END

ACQCCDCBCDKDFDB