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EXX - Exxaro Resources Limited - Exxaro suspends underground Mining at new

Release Date: 14/03/2007 16:56:01      Code(s): EXX
    EXX - Exxaro Resources Limited - Exxaro suspends underground Mining at new  
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")                                                 
    Diversified resources group Exxaro Resources Limited (Exxaro) has announced 
    that, in the interests of safety, it has indefinitely suspended underground 
    mining operations at its New Clydesdale mine in Mpumalanga province. The    
open-cast and plant operations will continue to operate.                    
    The decision to suspend underground operations follows a rock engineering   
    assessment of the old workings which indicated that the support pillars had 
deteriorated to an unacceptable safety factor. To ensure the safety of all  
    underground employees, management decided to suspend underground operations 
    with immediate effect as the condition cannot be rectified in the short     

    No job losses will be incurred as the group will redeploy affected          
    employees to its other coal operations in Mpumalanga and Limpopo provinces. 
    Management is exploring all possible alternatives to mitigate the impact on 
production and product supply and these measures are expected to be         
    finalised in the next quarter.                                              
    Substantial export quality underground reserves remain in the New           
    Clydesdale mining lease area (6,5Mt ROM) and an assessment is underway to   
determine the feasibility of accessing these reserves with new              
    To date, New Clydesdale`s underground operations have produced 65% of the   
mine`s annual production and initial indications are that the financial     
    impact of the suspension will be loss of income of R50 million for 2007,    
    with remedial actions underway to reduce this figure.                       
    In the financial year ended 31 December 2006 New Clydesdale produced 1,1Mt  
of thermal and metallurgical coal, primarily for the export market.         
    The financial information in this statement has not been reviewed or        
    reported on by Exxaro`s auditors.                                           
Editor`s Note:                                                              
    Exxaro is a diversified resources group with interests in the coal, mineral 
    sands, base metals, industrial minerals and iron ore commodities. The       
    group`s coal business has a capacity of 45Mtpa and is South Africa`s fourth 
largest coal producer. Exxaro is the largest supplier of coal to Eskom for  
    power generation and is the country`s largest producer of metallurgical     

    Trevor Arran                                                                
    Executive General Manager: Corporate Affairs & Investor Relations           
Tel: +27 (0) 12 307 3292                                                    
    Mobile: +27 (0) 83 609 1444                                                 
    Sponsor:  J.P. Morgan Equities Limited                                      
Date: 14/03/2007 16:56:01 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                             .                  

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