EXX - Exxaro To Acquire Namakwa Sands And An Interest In Black Mountain
Exxaro Resources Limited (Previously Kumba Resources Limited)
(Incorporated in the Republic of South Africa)
(Registration number 2000/011076/06)
Share code: EXX & ISIN: ZAE000084992)
("Exxaro" or "the company")
19 January 2007
EXXARO TO ACQUIRE NAMAKWA SANDS AND AN INTEREST IN BLACK MOUNTAIN
Diversified resources group Exxaro Resources Limited (Exxaro) has announced
that pursuant to its empowerment transaction implemented recently, it has
exercised the options to acquire the Namakwa Sands mineral sands operation
and a 26% interest in a company to be formed to hold the Black Mountain
zinc and lead mine and the Gamsberg zinc project.
The Namakwa Sands operation and the Black Mountain/Gamsberg interest will
be acquired from Anglo Operations Limited, a wholly-owned subsidiary of
Anglo American plc for a cash consideration of R2 015 million and R180
million respectively, both which are subject to certain adjustments as
fully explained in the revised listing particulars of Exxaro dated 9
"These acquisitions will position Exxaro strategically as one of the
world`s largest suppliers of titanium dioxide feedstock and zircon and in
addition, will strengthen its leading position in the South African zinc
market," said Dr Con Fauconnier, Exxaro`s chief executive officer.
"Namakwa Sands is a world-class mineral sands operation with a highly
trained and skilled workforce which we value greatly," he added.
Exxaro already enjoys a prominent position in the mineral sands business,
with mining and smelter operations in KwaZulu-Natal and a 50% ownership in
the Tiwest Joint Venture, a fully integrated mineral sands and pigment
producer in Western Australia.
Exxaro currently owns the only zinc metal refinery in South Africa with a
controlling interest in the Rosh Pinah zinc mine in Namibia.
Namakwa Sands` major assets consist of a mineral sands mine at Brand-se-
Baai and a mineral separation plant and smelter, all situated on the west
coast of the Western Cape.
The Black Mountain operation is located near the town of Aggeneys in the
Northern Cape and mines lead, zinc, copper and silver and supplies zinc
concentrate to Exxaro`s zinc metal refinery in Springs, Gauteng, on a long-
term basis. The Gamsberg zinc project is potentially a large scale, low to
medium grade, open-pit mine located adjacent to Black Mountain, with an
estimated production capacity of 300ktpa of zinc.
The acquisitions are conditional on the fulfillment of a number of
conditions including approval by Exxaro shareholders and subsequent
conversion of old order mining rights.
A circular setting out the terms of the transaction and convening a general
meeting of Exxaro shareholders is being prepared and will be posted to
shareholders within 30 days of today`s announcement.
The announcement is available on www.exxaro.com
Exxaro is a diversified resources group with interests in the coal, mineral
sands, base metals, industrial minerals and iron ore commodities.
Executive General Manager: Corporate Affairs & Investor Relations
Tel: +27 (0) 12 307 3292
Mobile: +27 (0) 83 609 1444
Date: 19/01/2007 16:01:01 Supplied by www.sharenet.co.za
Produced by the JSE SENS Department .