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EXX - Exxaro Resources - Exxaro Resources Limited & Tronox Incorporated
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")
JOINT NEWS RELEASE
EXXARO RESOURCES LIMITED & TRONOX INCORPORATED
Exxaro and Tronox boards of directors approve expansion of Tiwest titanium
dioxide plant in Kwinana, Western Australia
Diversified resources group Exxaro Resources Limited (Exxaro) and United States-
based Tronox Incorporated have announced that the boards of directors of both
companies have given approval for the expansion of their Tiwest joint venture
titanium dioxide (TiO2) pigment plant in Kwinana, Western Australia.
With expectations for continued strong demand growth in the Asia-Pacific region,
the expansion will allow Tiwest to capture future opportunities in this rapidly
growing market. The project, which will increase the plant`s current annual
capacity from 110ktpa to around 150ktpa, is expected to cost about A$100
million.
Tiwest plans to begin construction during 2008, subject to appropriate
regulatory approvals. The additional capacity is expected to come on line in
early 2010.
The joint venture partners have signed an agreement under which Exxaro will
provide ongoing funding for the expansion. Tronox has the option to contribute
its share of the capital at its discretion throughout the project and until a
date two years from commissioning, which will be taken into account when
calculating its final interest in the expanded production.
The Kwinana plant, with a current annual capacity of 110kt, produces chloride
process titanium dioxide (TiO2) pigment using Tronox`s proprietary technology
and marketed under the TRONOX brand.
"The Tiwest development is an important contribution to Exxaro`s strategy of
downstream value adding in our mineral sands business," said Sipho Nkosi,
Exxaro`s chief executive officer. Together with the South African east coast KZN
Sands operation and the soon to be completed acquisition of the Namakwa Sands
business on South Africa`s west coast, the combined developments position Exxaro
as a major supplier to the titanium and zircon industries.
"This expansion will provide us with the additional capacity needed to meet the
future demands of our existing customers and prospective new customers in the
Asia-Pacific region, which is projected to be the world`s largest pigment
consuming region in 2008 and beyond," said Tom Adams, Tronox chairman and chief
executive officer.
Editor`s Notes:
Tiwest
Tiwest is a 50:50 joint venture between Exxaro and Tronox Inc. It is the world`s
largest integrated titanium minerals production and manufacturing company.
Established in 1988, Tiwest operates in Western Australia. Its facilities
include the Cooljarloo mineral sands mine, the Chandala synthetic rutile plant
and the Kwinana titanium dioxide pigment plant. Tiwest`s success has been built
on the development of high quality mineral reserves and the application of
sophisticated process technology. For information on Tiwest, visit
www.tiwest.com.au
Exxaro
Exxaro is one of the largest South African-based diversified resources groups,
with interests in the mineral sands, coal, base metals, industrial minerals and
iron ore commodities. Exxaro was formed through the re-listing on the JSE
Limited of Kumba Resources in November 2006 as part of a major black economic
empowerment transaction in which Kumba`s iron ore assets were unbundled and
listed as Kumba Iron Ore, and the non-iron ore assets were merged with the
assets of Eyesizwe Coal and re-listed as Exxaro. More information is available
on www.exxaro.com
Tronox
Headquartered in Oklahoma City, Tronox is the world`s third-largest producer and
marketer of titanium dioxide pigment, with an annual production capacity of
642kt. Titanium dioxide pigment is an inorganic white pigment used in paint,
coatings, plastics, paper and many other everyday products. The company`s five
pigment plants, which are located in the United States, Australia, Germany and
the Netherlands, supply high-performance products to approximately 1 100
customers in 100 countries. In addition, Tronox produces electrolytic products,
including sodium chlorate, electrolytic manganese dioxide, boron trichloride,
elemental boron and lithium manganese oxide. For additional information on
Tronox, visit www.tronox.com
27 March 2008
Sponsor: JP Morgan Equities
For enquiries:
Exxaro
Executive General Manager: Corporate Affairs & Investor Relations
Trevor Arran
Tel: +27 12 307 3292
Mobile: +27 83 609 1444
E-mail: trevor.arran@exxaro.com
Tronox
Investor Relations: Media:
Robert Gibney Debbie Schramm
405-775-5105 405-775-5177 (cell: 405-830-6937)
E-mail: robert.gibney@tronox.com E-mail: debbie.schramm@tronox.com
Date: 27/03/2008 15:00:01 Supplied by www.sharenet.co.za
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