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PET - Petmin Limited - Operations update: Petmin signs renewable 600,000 Tonne

Release Date: 22/02/2012 08:45
Code(s): PET
Wrap Text

PET - Petmin Limited - Operations update: Petmin signs renewable 600,000 Tonne Anthracite export capacity agreement with Grindrod PETMIN LIMITED Incorporated in the Republic of South Africa Registration Number 1972/001062/06 Share Code JSE: PET & ISIN: ZAE000076014 Share Code AIM: PTMN ("Petmin" or "the Company") Operations update: Petmin signs renewable 600,000 tonne anthracite export capacity agreement with Grindrod Petmin has signed a renewable five year agreement which will enable it to export up to 600,000 tonnes of metallurgical anthracite a year from Grindrod Terminals Kusasa dry bulk facility in Richards Bay, located in the KwaZulu Natal province of South Africa. The agreement, effective from 1 February 2012, gives Petmin the capacity to ship its expanded anthracite production from the Somkhele mine 85km north of Richards Bay. Under the terms of the agreement, Petmin has been allocated 45,000 tonnes of exclusive stockpile and an indicated vessel loading rate of 12,000 tonnes per day. The Grindrod facility replaces Petmin`s previous throughput arrangements at Richards Bay. Somkhele is increasing production from its current 535,000 sales tonnes per annum to in excess of 1.2m tonnes annually. Long term sales contracts are already in place with domestic and international customers. The mine produces anthracite with low phosphorous and sulphur, and high vitrinite content, for export via Richards Bay (55% of production in 2010/11) to iron ore pelletizing and sintering markets mostly in Brazil, and for the South African ferro alloy industry (45% of production in 2010/11). Anthracite produced by Somkhele is transported by road from Somkhele to Richards Bay, and to domestic customers. This operational update is not related to the Cautionary announcement issued by Petmin on 9 January 2012 and renewed on 20 February 2012. Notes - Petmin is a cash producing dividend paying high growth junior miner listed on AIM (PTMN) and JSE (PET) - The Grindrod Terminals Kusasa facility at Richards Bay has a 60,000mCubed warehouse, silo capacity and an open area of approximately 15,000 tonnes. It is connected by conveyor to the port and is mostly used for coal and heavy minerals. Media enquiries Jonathon Rees +27 76 185 1827 Jonathon@proofcommunication.com Petmin Bradley Doig (Director of Business Development) +27 11 706 1644 Nominated Adviser and Broker (AIM) Macquarie Capital (Europe) Limited Steve Baldwin +44 20 3037 2362 Nicholas Harland +44 20 3037 2369 Sponsor and Corporate Adviser (JSE) River Group Andrew Lianos +27 834 408 365 Johannesburg 22 February 2012 Date: 22/02/2012 08:45:01 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.

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