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EXX - Exxaro Resources Limited - Exxaro starts Inyanda Mine Construction

Release Date: 29/01/2007 15:35
Code(s): EXX
Wrap Text

EXX - Exxaro Resources Limited - Exxaro starts Inyanda Mine Construction 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 STARTS INYANDA MINE CONSTRUCTION Diversified resources group Exxaro Resources Limited (Exxaro) has commenced the construction programme for its new Inyanda coal mine situated near Witbank in Mpumalanga province, with full production expected to be reached during 2008 as indicated in the Exxaro competent persons` report published as part of the company`s listing documentation on 9 October 2006. The Inyanda mine will produce 1Mtpa of A-grade thermal coal for the export market, via Richards Bay Coal Terminal (RBCT), and involves an estimated R245 million of start-up capital expenditure. "We have now placed orders for civil work and plant construction and it is all systems go to get production underway and to capitalise on the buoyant global market for high quality thermal coal," said Ernst Venter, executive general manager of Exxaro`s coal division. Development of the Inyanda mine has been made possible by the granting of new order mining rights from the Department of Minerals and Energy, as well as the go-ahead of the Phase V expansion of RBCT, late in 2006. Editor`s Note: Exxaro is a diversified resources group 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 and is South Africa`s fourth largest coal producer. Exxaro is the largest supplier of coal to Eskom for power generation and is the country`s largest producer of metallurgical coals. www.exxaro.com 29 January 2007 Enquiries: Ernst Venter Executive General Manager: Exxaro Coal Tel: +27 (0) 12 307 4322 Mobile: +27 (0) 83 609 1313 Trevor Arran Executive General Manager: Corporate Affairs & Investor Relations Tel: +27 (0) 12 307 3292 Mobile: +27 (0) 83 609 1444 Sponsor JPMorgan Equities Limited Date: 29/01/2007 15:35:01 Supplied by www.sharenet.co.za Produced by the JSE SENS Department.