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EXX - Exxaro Resources Limited - Exxaro suspends underground Mining at new clydesdale 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 SUSPENDS UNDERGROUND MINING AT NEW CLYDESDALE Diversified resources group Exxaro Resources Limited (Exxaro) has announced that, in the interests of safety, it has indefinitely suspended underground mining operations at its New Clydesdale mine in Mpumalanga province. The open-cast and plant operations will continue to operate. The decision to suspend underground operations follows a rock engineering assessment of the old workings which indicated that the support pillars had deteriorated to an unacceptable safety factor. To ensure the safety of all underground employees, management decided to suspend underground operations with immediate effect as the condition cannot be rectified in the short term.
No job losses will be incurred as the group will redeploy affected employees to its other coal operations in Mpumalanga and Limpopo provinces. Management is exploring all possible alternatives to mitigate the impact on production and product supply and these measures are expected to be finalised in the next quarter. Substantial export quality underground reserves remain in the New Clydesdale mining lease area (6,5Mt ROM) and an assessment is underway to determine the feasibility of accessing these reserves with new infrastructure. To date, New Clydesdale`s underground operations have produced 65% of the mine`s annual production and initial indications are that the financial impact of the suspension will be loss of income of R50 million for 2007, with remedial actions underway to reduce this figure. In the financial year ended 31 December 2006 New Clydesdale produced 1,1Mt of thermal and metallurgical coal, primarily for the export market. The financial information in this statement has not been reviewed or reported on by Exxaro`s auditors. 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
Enquiries: Trevor Arran Executive General Manager: Corporate Affairs & Investor Relations Tel: +27 (0) 12 307 3292 Mobile: +27 (0) 83 609 1444 Sponsor: J.P. Morgan Equities Limited Date: 14/03/2007 16:56:01 Supplied by www.sharenet.co.za Produced by the JSE SENS Department.
