Go Back Email this Link to a friend


Exxaro Resources Limited - Exxaro Resources And Gdf Suez Announce The Development Of A 600 Mw Coal-fired Power Plant

Release Date: 15/07/2013 16:50:00      Code(s): EXX     
EXXARO RESOURCES LIMITED
Incorporated in the Republic of South Africa
(Registration Number: 2000/011076/06)
JSE share code: EXX
ISIN code: ZAE000084992
ADR code: EXXAY


Press Release
Exxaro Resources Limited
GDF SUEZ Energy South Asia, Middle East & Africa


             Exxaro Resources and GDF SUEZ announce the development
                        of a 600 MW coal-fired power plant

Pretoria, 15 July 2013 ? Diversified South African-based mining group Exxaro Resources Limited
(JSE: EXX) (Exxaro) and France?s GDF SUEZ, global leader in Independent Power Production, are
pleased to announce that they concluded a project development agreement and a coal supply term
sheet for a 600 MW coal-fired power plant in Limpopo province.

Following a selection process, Exxaro selected GDF SUEZ in mid-2012 for the development of a 600
MegaWatt (?MW?) coal-fired power station in the Waterberg region, Limpopo province. The proposed
development site, 17 km north-west of Lephalale, is located adjacent to Exxaro?s Grootegeluk coal mine.
The fuel for this 600MW baseload coal-fired power station will be supplied from Exxaro?s Thabametsi
mine, a prospective opencast greenfields mine, via a surface conveyor belt. The mine will supply up to
3.8 million tonnes per annum of run-of-mine coal to the power plant post ramp-up. A conventional
truck and shovel method of operation will be utilised for the mining operations.

The period of the coal supply will be determined by the duration of the power purchase agreement, but
is anticipated to be up to 25 years. Coal will continue to be a significant part of South Africa?s energy mix
even though the Department of Energy?s (?DoE?) Integrated Resource Plan for Electricity 2010 to 2030
(?IRP?) sees renewable energy making up 42% of all new electricity generation capacities in South Africa
over the next 20 years.

The total capacity of the plant could be expanded to circa 1,200 MW, depending on the availability of
water and on grid integration constraints. South Africa urgently requires the installation of additional
electricity generation capacity in the near future due to the combination of a low reserve margin and
growing electricity demand. GDF SUEZ and Exxaro are global leaders in their respective industries and
are pleased to be able to combine their strengths to positively impact the baseload power generation
capacity, with the aim of assisting in alleviating South Africa?s power supply challenges.
In December 2012, the South African Minister for the DoE issued a Determination including an allocation
of 2,500 MW of coal baseload power, which is in accordance with the capacity that the IRP allocated to
coal ?New build? between 2014 and 2024. In line with this, the DoE issued a Request for Registration and
Information seeking feedback from interested independent power producers by 12 July 2013, which was
duly submitted by GDF SUEZ. As with the DoE?s Renewable Energy Independent Power Producer
Procurement Programme, the DoE will be the procurer, while State-owned power utility Eskom will be
the buyer and will sign the power purchase agreements.

Shankar Krishnamoorthy, CEO and President of GDF SUEZ Energy South Asia, Middle East & Africa,
commented: ?GDF SUEZ?s partnership with South Africa is gaining momentum, with several agreements
successfully concluded during the second quarter of 2013. That is not only good news for us, but also for
the country. Successful public-private partnerships in the power sector will contribute to the adequacy
and efficiency of South Africa?s electricity industry, which is key to the country?s economic development.
The South African government is taking the right steps and GDF SUEZ takes pride in working with its local
partner Exxaro to help improve the country?s energy supply security.?

Sipho Nkosi, Chief Executive Officer of Exxaro Resources said: ?This is an exciting milestone for Exxaro in
the development of this initiative to contribute towards power availability and supply in South Africa. As
a major player in the coal mining sector, we are integrated in the power (and energy) production value
chain. We have taken advantage of the opportunities provided from current regulatory developments in
South Africa?s mineral and energy sectors to develop a coal mine that can supply new power generating
capacity. We have played to our strength of coal production and partnered with a competent entity such
as GDF SUEZ for the development of the power plant and electricity production. We anticipate working
closely with all the regulatory authorities to making this project a success for the benefit of all in South
Africa.?


About GDF SUEZ Group (South Asia, Middle East & Africa region)

The GDF SUEZ Group ranks among the world?s leading energy companies. GDF SUEZ develops its three core
businesses (electricity, natural gas, and energy & environmental services) around a model based on responsible
growth to provide essential services to its customers. The Group employs 218,900 people worldwide and achieved
revenues of EUR 97 billion in 2012. GDF SUEZ is listed on the Brussels and Paris stock exchanges and is represented
in the main international indices. In the Gulf countries, it is the number 1 independent power and desalinated water
producer with 25.5 GW of power capacity and 4.8 million m?/day of desalination capacity. In Africa, the Group
started construction of a 300 MW wind farm in Morocco where it also has a 1,200 MW supercritical coal-fired
project under development. In South Africa, GDF SUEZ is starting construction of the 94 MW West Coast 1 wind
farm in the West Cape Province and in June the Group signed the Power Purchase Agreements for two greenfield
open-cycle turbine power plants of 335 MW (Dedisa) and 670 MW (Avon), which are located in the Eastern Cape
Province and in the KwaZulu-Natal Province respectively.
About Exxaro Resources Limited

Exxaro Resources is one of the largest South African-based diversified resources groups, with interests in the coal,
mineral sands, ferrous and energy commodities and has business interests in South Africa, Botswana, Republic of
Congo, China and Australia. It is the second-largest coal producer in South Africa with current production of 40
million tonnes per annum, and is listed on the JSE Limited, where it is a constituent of the Top 40 and the Socially
Responsible Investment (SRI) indices, respectively. At 31 December 2012, Exxaro Resources had assets of R41,6
billion and a market capitalisation of R60 billion (US$7 billion). In 2012 Exxaro was one of the top 10 mining
companies worldwide in terms of total shareholder returns over the 10 year period between 2001 and 2011. Our
strategy, given our commodity resource base and access to financial and human capital, aims to create and deliver
economic and social returns and for all our stakeholders.




Enquiries:                                                    MZILA MTHENJANE
                                                              Exxaro Resources Limited
SANJITH MUNGROO                                               Executive Head, Strategy & Corporate Affairs
GDF SUEZ Energy Southern Africa                               Tel: + 27 (0) 12 307 7393
Head of Business Development, South Africa                    Mobile: +27 (0) 83 417 6375
Tel: + 27 (0) 11 209 9225                                     Email: mzila.mthenjane@exxaro.com
Mobile: +27 (0) 82 874 4660
Email: Sanjith.Mungroo@gdfsuez.com



Sponsor
Deutsche Securities (SA) Proprietary Limited

Date: 15/07/2013 04:50:00 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.