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
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."
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 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.
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.
Investor Relations and Media:
Executive General Manager: Corporate Affairs & Investor Relations
Tel: +27 12 307 3292
Mobile: +27 83 609 1444
Investor Relations: Media:
Robert Gibney Debbie Schramm
405-775-5105 405-775-5177(cell: 405-830-6937)
13 February 2007
Sponsor: J.P.Morgan Equities Limited
Date: 13/02/2007 15:00:01 Supplied by www.sharenet.co.za
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