As already announced on 6 January 2010 to the New York Stock Exchange, KHD intends to restructure its operations into two independent and distinct legal entities so that a mineral royalty company and an industrial plant technology, equipment and service company are created.
The mineral royalty company will be called Terra Nova Royalty Corporation (‘Terra Nova’) and will focus on the acquisition of existing mineral royalties; providing capital for the exploration, development and construction of iron ore and other metals mines in exchange for royalties; monetizing metal by-product streams from either operating mines or projects under development; and providing acquisition financing to established operating companies in return for a royalty on acquired properties. Terra Nova intends to remain listed in New York and will be independent from the industrial plant operations. The industrial plant technology, equipment and service, company will be held by KHD Humboldt Wedag (Deutschland) AG and listed on the Frankfurt Stock Exchange from 31 March 2010. This operation will continue to operate under the KHD Humboldt Wedag brand name. Management will continue to focus on enhancing KHD’s traditional cement business and the company’s headquarters will be in Cologne, Germany. Jouni Salo will continue in his current role as CEO of this business.

For customers and most employees of the industrial plant business, there will be no change to the day to day operations or business.

The first step of this transaction will be completed by 31 March 2010.