Go Back Email this Link to a friend


Exx - Exxaro Acquires Namakwa Sands

Release Date: 01/10/2008 16:00:02      Code(s): EXX
EXX - Exxaro Acquires Namakwa Sands                                             
Exxaro Resources Limited                                                        
Registration number: 2000/011076/06                                             
JSE share code: EXX                                                             
ISIN code: ZAE000084992                                                         
ADR code: EXXAY                                                                 
EXXARO ACQUIRES NAMAKWA SANDS                                                   
On 6 March 2007, diversified resources group Exxaro Resources Limited (Exxaro)  
announced that Exxaro shareholders had approved the acquisition of Namakwa Sands
and a 26% interest in Black Mountain Mining (Proprietary) Limited (Black        
Mountain Mining), which is to control the Black Mountain mine and Gamsberg      
project. The acquisitions were conditional upon fulfillment of conditions       
precedent set out in the circular to Exxaro shareholders dated 19 February 2007 
relating to the acquisition. The conditions precedent included, inter alia, the 
conversion of the operations` old order mining rights, the cession of the       
Namakwa Sands rights to Exxaro and the Black Mountain and Gamsberg rights to    
Black Mountain Mining, and the registration thereof. The last of the conditions 
precedent have been fulfilled. Accordingly, the acquisition by Exxaro of Namakwa
Sands has been completed. Exxaro will acquire the 26% interest in Black Mountain
Mining once the share sale formalities have been completed.                     
The acquisition completes a process that started when the former Kumba Resources
Limited was unbundled in November 2006 and re-listed as Exxaro. Options to      
acquire Namakwa Sands and the 26% interest in Black Mountain/Gamsberg were      
granted to Exxaro as part of the unbundling transaction and were exercised      
following the approval by shareholders in March 2007.                           
Exxaro acquired the Namakwa Sands operations from Anglo American for a cash     
consideration of R2 015 million and will acquire the 26% interest in Black      
Mountain Mining from Anglo American for approximately R180 million, which       
excludes certain price adjustments as detailed in the revised listing           
particulars of Exxaro dated 9 October 2006.                                     
Namakwa Sands` major assets include a mineral sands mine at Brand-se-Baai, a    
mineral separation plant at Koekenaap and a smelter at Saldanha Bay, all        
situated on the west coast of the Western Cape. The business produces 125kt of  
zircon, 185kt of titania slag and 100kt of pig iron per year.                   
"These acquisitions position Exxaro strategically as one of the world`s top     
three suppliers of high-grade titanium dioxide feedstock and zircon," said Sipho
Nkosi, Exxaro`s chief executive officer.                                        
"Namakwa Sands is a world-class mineral sands operation with a highly skilled   
workforce which we value greatly. The operation will fit well within our mineral
sands business strategy," he added.                                             
Exxaro also operates mineral sands mining and smelter operations in KwaZulu-    
Natal and has a 50% ownership in the Tiwest Joint Venture, a fully integrated   
mineral sands and pigment producer in Western Australia.                        
The Black Mountain operation is located near the town of Aggeneys in the        
Northern Cape where it mines lead, zinc, copper and silver. Some 45ktpa of zinc 
concentrate is supplied to Exxaro`s zinc metal refinery in Springs, Gauteng, on 
a long-term basis. The Gamsberg zinc project is potentially a large scale, low- 
to medium-grade, open-pit mine located adjacent to Black Mountain, with an      
estimated production capacity of 300ktpa of zinc.                               
"Our interest in Black Mountain and Gamsberg will strengthen our leading        
position in the South African zinc market," said Nkosi.                         
Exxaro has a long-standing presence in the Southern African zinc industry,      
owning the only zinc metal refinery in South Africa with a controlling interest 
in the Rosh Pinah zinc mine in Namibia.                                         
ends                                                                            
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.                                                           
More information, including the revised listing particulars of Exxaro dated 9   
October 2006, are available on www.exxaro.com                                   
Enquiries:                                                                      
Trevor Arran                                                                    
Executive General Manager: Corporate Affairs & Strategy                         
Tel: +27 (0) 12 307 3292                                                        
Mobile: +27 (0) 83 609 1444                                                     
Email: trevor.arran@exxaro.com                                                  
1 October 2008                                                                  
Sponsor: J.P. Morgan Equities Limited                                           
Date: 01/10/2008 16:00:02 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                             .                  
The SENS service is an information dissemination service administered by the    
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or            
implicitly, represent, warrant or in any way guarantee the truth, accuracy or   
completeness of the information published on SENS. The JSE, their officers,     
employees and agents accept no liability for (or in respect of) any direct,     
indirect, incidental or consequential loss or damage of any kind or nature,     
howsoever arising, from the use of SENS or the use of, or reliance on,          
information disseminated through SENS.                                          



                                        
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.