EXX - Exxaro - Exxaro`s Inyanda Mine Boosts Coal Export Potential
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`S INYANDA MINE BOOSTS COAL EXPORT POTENTIAL
The construction of the Exxaro Resources Limited (Exxaro) Inyanda coal mine
near Witbank in Mpumalanga is progressing ahead of schedule and is on track
to reach its production capacity of 1,5Mtpa by April 2008.
At a ceremony held on-site today to mark the construction phase of the
first new Exxaro mine since the launch of the group following the Kumba
Resources empowerment transaction in November 2006, chief executive officer
(designate) Sipho Nkosi said Inyanda is poised to play a key role in
Exxaro`s objective to build a strong position in the export coal market.
The Inyanda mine will produce A-grade thermal coal for the export market
via Richards Bay Coal Terminal (RBCT). Exxaro is spending an estimated R269
million in developing this new open-pit operation.
"We aim to capitalise on the buoyant global market for lucrative high
quality thermal coal. Exxaro has been able to acquire additional
competitively priced export entitlement through RBCT and at this stage we
are signed up for a total entitlement of 6,3Mtpa by 2009. Our shareholding
in RBCT is being matched by increasing production of export coal from our
existing mines and from our new developments such as Inyanda and the Mafube
joint venture with Anglo Coal," said Nkosi.
He added that civil and plant construction started in February 2007 and
that already run-of-mine from Inyanda is being transported 45km by road to
Exxaro`s New Clydesdale mine for processing and export. Some 600 000 tonnes
of coal is expected to be produced during the new mine`s pre-commissioning
phase running until March 2008.
"It is fitting that Inyanda is Exxaro`s first development to come on stream
since the group`s launch as the mine originated as a joint venture between
Kumba Resources and Eyesizwe Coal in 2002. The project was known as
Kalbasfontein, and was one of the early interactions between the companies
prior to the merger of their respective coal assets," said Nkosi.
Development of the Inyanda mine follows the granting of a new order mining
right from the Department of Minerals and Energy (DME), as well as the go-
ahead of the Phase V expansion of RBCT, late in 2006.
Mpumalanga`s MEC for economic development and planning, Craig Padayachee,
said: "Exxaro is important to Mpumalanga`s economy. Mining is one of the
biggest sectors in Mpumalanga that is able to create employment and
opportunities for young and new entrepreneurs. On completion, the Inyanda
mine will play a vital role in boosting the economy of the province and the
Guests at the Inyanda ceremony today included Mr Padayachee; Debbie
Ntombela, the DME`s chief director for the province; local community
leaders and other key stakeholders.
For photographs, please contact Hilton Atkinson (083 609 1452)
Exxaro is one of the largest South African-based diversified resources
groups 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, making it South
Africa`s fourth largest coal producer. Exxaro expects its growth pipeline
to enable the group to achieve a production target of 75Mtpa by 2014. The
group is the largest supplier of coal to Eskom for power generation and is
the country`s largest producer of metallurgical coals. Exxaro operates
eight open cast and underground coal mines, six of which are situated in
Exxaro was formed through the re-listing on the JSE Limited of Kumba
Resources in November 2006 as part of the R50 billion empowerment
transaction in which Kumba Resources` iron ore assets were unbundled and
listed on the JSE Limited as Kumba Iron Ore, and the Kumba Resources` non-
iron ore assets were merged with those of Eyesizwe Coal and re-listed as
Executive General Manager: Corporate Affairs & Investor Relations
Tel: +27 (0) 12 307 3292
Mobile: +27 (0) 83 609 1444
6 July 2007
Date: 06/07/2007 13:00:01 Supplied by www.sharenet.co.za
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