Pasminco Will Not Sell Assets At Unacceptable Prices

On 20 July 2001, Pasminco announced its intention to sell its mining assets and become an international smelting business.

The Pasminco Board remains committed to pursuing this strategy. The Board met yesterday to review the progress of the asset sale process and to consider the impact of continuing weakness in zinc prices and other external factors.

One bid is currently before the Company for the Broken Hill mine and a further bid is expected. The Information Memorandum for the Century mine was completed and despatched to a number of pre-qualified potential buyers at the end of last week.

The successful implementation of this strategy requires the Company to obtain sufficient funds to enable it to pay down debt to a level the smelting business can support.

The Board noted that since the 20 July 2001 restructuring announcement was made, the external environment in which the Company trades has continued to deteriorate, particularly the zinc price which has now fallen to an all time low in real terms of US$805 per tonne. The global economic slump and its impact on metal demand shows no sign of improving. The Company is also concerned that recent negative market sentiment will impact the credibility of its asset-marketing program

The Board re-affirmed that it is not the Company`s intention to dispose of mining assets at prices below their fair market values.

Should acceptable sale prices not be achieved for the assets, the Company will meet with its lenders to review the alternatives available to it. There are other options available and the Company is presently working in co-operation with specialist advisers to its lenders to ensure that there is a shared understanding of these options. Some long-term arrangement with the Company`s lenders would be required in order to proceed on an alternate basis.

At present, the Company continues to meet its obligations with lenders support. That support includes the continued granting of waivers over certain financing obligations and access to an overdraft facility. Pasminco is presently in discussions to secure a Standstill Agreement with lenders through to at least the end of October.

The Company will continue to keep shareholders informed of any material developments.

For further information contact:

Trevor Shard
Group Manager - Investor Relations
++61 (3) 9288 9186 or 0419 584 515

Peter Griffin
Group Manager - Public Affairs
++61 (3) 9288 0463 or 0419 314 265

Shareholder Information Line - 1800 812 548

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