Go Back Email this Link to a friend

EXX - Exxaro - Exxaro`s Inyanda Mine Boosts Coal Export Potential

Release Date: 06/07/2007 13:00:01      Code(s): EXX
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")                                                     
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)                  
Editor`s Notes:                                                                 
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        
Trevor Arran                                                                    
Executive General Manager: Corporate Affairs & Investor Relations               
Tel: +27 (0) 12 307 3292                                                        
Mobile: +27 (0) 83 609 1444                                                     
6 July 2007                                                                     
Sponsor: JPMorgan                                                               
Date: 06/07/2007 13:00:01 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                             .                  

Email this JSE Sens Item to a Friend.

Send e-mail to
© 2018 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.