Go Back Email this Link to a friend


Exx - Exxaro - Tiwest Joint Venture Partners Announce Plans For Expansion Of

Release Date: 13/02/2007 15:00:04      Code(s): EXX
EXX - Exxaro - Tiwest joint venture partners announce plans for expansion of    
              titanium dioxide plant                                            
EXXARO RESOURCES LIMITED                                                        
(formerly Kumba Resources Limited)                                              
Incorporated in the Republic of South Africa                                    
(Registration Number:  2000/011076/06)                                          
Share Code:  EXX                                                                
ISIN Number:  ZAE000084992                                                      
("Exxaro" or "the company")                                                     
EXXARO RESOURCES LIMITED & TRONOX INCORPORATED                                  
Tiwest Joint Venture partners announce plans for expansion of titanium dioxide  
plant                                                                           
Diversified resources group Exxaro Resources Limited (Exxaro) and Tronox        
Incorporated (Tronox) today announced plans to increase annual production       
capacity, subject to Board approval, at their Tiwest Joint Venture (Tiwest)     
titanium dioxide pigment plant in Kwinana, Western Australia. Engineering work  
has started at the site.                                                        
Tiwest is a 50:50 joint venture between Exxaro subsidiary Exxaro Sands Australia
Pty Limited and Tronox Western Australia Pty Limited.                           
The Kwinana plant, with a current annual capacity of 110 000 tonnes, produces   
chloride process titanium dioxide (TiO2) pigment using Tronox`s proprietary     
technology and marketed under the Tronox brand.  The brownfield expansion will  
increase the plant`s annual capacity by 40 000 to 50 000 tonnes.  The companies 
estimate the expansion will cost in the range of US$35 million to US$45 million.
The additional capacity is expected to come on line in 2009.                    
The additional capacity will allow Tronox to meet TiO2 demands in the rapidly   
growing Asia-Pacific region, which is projected to be the world`s largest       
pigment consuming region by 2010.  This increase in demand is driven primarily  
by China`s explosive growth and increasing demands for quality of life products 
that contain TiO2.                                                              
"The Tiwest development will further strengthen Exxaro`s prominent position in  
the global mineral sands industry, said Dr Con Fauconnier, Exxaro`s chief       
executive officer. "It complements the ramp-up under way at our South African   
east coast KZN Sands operation and aligns well with Exxaro`s acquisition,       
subject to Exxaro shareholder approval and certain regulatory approvals, to     
acquire the Namakwa Sands business on South Africa`s west coast from Anglo      
American plc. These combined developments will position Exxaro strategically as 
one of the world`s largest suppliers of titanium dioxide feed and zircon.       
"We value the co-operative relationship that has developed between Tronox and   
Exxaro since 1995 and are pleased to be able to continue this mutually          
beneficial relationship with a leading pigment producer," added Dr Fauconnier.  
"This new capacity will allow us to capture growth opportunities in the Asia-   
Pacific market, while meeting the needs of existing customers in this region,"  
said Tom Adams, Tronox chairman and chief executive officer.  "Tiwest, the      
world`s largest fully integrated titanium dioxide project, is one of our most   
cost-effective operations, which is directly attributable to our talented Tiwest
employees. I commend them for their continued contributions to our success."    
Editor`s Notes:                                                                 
Tiwest                                                                          
The Tiwest Joint Venture is the world`s largest integrated titanium minerals    
production and manufacturing company.  Established in 1988, Tiwest operates six 
sites in Western Australia.  Its facilities include the Cooljarloo mineral sands
mine, the Chandala synthetic rutile plant and the Kwinana titanium dioxide      
pigment plant.  Tiwest`s success has been built on the development of high      
quality mineral reserves and the application of sophisticated process           
technology.  For information on Tiwest, visit www.tiwest.com.au.                
Exxaro                                                                          
Exxaro is the largest South African-based diversified resources group, with     
interests in the mineral sands, coal, base metals, industrial minerals and iron 
ore commodities. Exxaro was formed through the re-listing on the JSE Limited of 
Kumba Resources in November 2006 as part of a major black economic empowerment  
transaction in which Kumba`s iron ore assets were unbundled and listed as Kumba 
Iron Ore, and the non-iron ore assets were merged with the assets of Eyesizwe   
Coal and re-listed as Exxaro.  Exxaro will release its earnings for the         
financial year ended 31 December 2006 on 22 February 2007. More information is  
available on www.exxaro.com.                                                    
Tronox                                                                          
Headquartered in Oklahoma City, Tronox is the world`s third-largest producer and
marketer of titanium dioxide pigment, with an annual production capacity of 624 
000 tonnes.  Titanium dioxide pigment is an inorganic white pigment used in     
paint, coatings, plastics, paper and many other everyday products.  The         
company`s five pigment plants, which are located in the United States,          
Australia, Germany and the Netherlands, supply high-performance products to more
than 1 100 customers in approximately 100 countries.  In addition, Tronox       
produces electrolytic products, including sodium chlorate, electrolytic         
manganese dioxide, boron trichloride, elemental boron and lithium manganese     
oxide.  Tronox will hold a conference call on 22 February 2007, at 11 a.m. EST, 
to discuss its fourth-quarter 2006 financial and operating results and          
expectations for the future.  The call will follow the release of Tronox`s      
fourth-quarter earnings on 22 February at 7 a.m. EST.  Details on the call are  
available on Tronox`s website at www.tronox.com.                                
Exxaro Contact                                                                  
Investor Relations and Media:                                                   
Trevor Arran                                                                    
Executive General Manager: Corporate Affairs & Investor Relations               
Tel: +27 12 307 3292                                                            
Mobile: +27 83 609 1444                                                         
E-mail: trevor.arran@exxaro.com                                                 
Tronox Contacts                                                                 
Investor Relations:           Media:                                            
Robert Gibney                 Debbie Schramm                                    
405-775-5105                  405-775-5177(cell:  405-830-6937)                 
robert.gibney@tronox.com      debbie.schramm@tronox.com                         
13 February 2007                                                                
Sponsor: J.P.Morgan Equities Limited                                            
Date: 13/02/2007 15:00:01 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                             .                  



                                        
Email this JSE Sens Item to a Friend.

Send e-mail to
© 2017 SHARENET (PTY) Ltd, Cape Town, South Africa
Home     Terms & conditions    Privacy Policy
    Security Notice    Contact Details
Market Statistics are calculated by Sharenet and are therefore not the official JSE Market Statistics. The calculation/derivation may include underlying JSE data.