| Wed 1 Oct 2008, 16:00 | | EXX - Exxaro Acquires Namakwa Sands |
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EXX
EXX
EXX - Exxaro Acquires Namakwa Sands
Exxaro Resources Limited
Registration number: 2000/011076/06
JSE share code: EXX
ISIN code: ZAE000084992
ADR code: EXXAY
EXXARO ACQUIRES NAMAKWA SANDS
On 6 March 2007, diversified resources group Exxaro Resources Limited (Exxaro)
announced that Exxaro shareholders had approved the acquisition of Namakwa Sands
and a 26% interest in Black Mountain Mining (Proprietary) Limited (Black
Mountain Mining), which is to control the Black Mountain mine and Gamsberg
project. The acquisitions were conditional upon fulfillment of conditions
precedent set out in the circular to Exxaro shareholders dated 19 February 2007
relating to the acquisition. The conditions precedent included, inter alia, the
conversion of the operations` old order mining rights, the cession of the
Namakwa Sands rights to Exxaro and the Black Mountain and Gamsberg rights to
Black Mountain Mining, and the registration thereof. The last of the conditions
precedent have been fulfilled. Accordingly, the acquisition by Exxaro of Namakwa
Sands has been completed. Exxaro will acquire the 26% interest in Black Mountain
Mining once the share sale formalities have been completed.
The acquisition completes a process that started when the former Kumba Resources
Limited was unbundled in November 2006 and re-listed as Exxaro. Options to
acquire Namakwa Sands and the 26% interest in Black Mountain/Gamsberg were
granted to Exxaro as part of the unbundling transaction and were exercised
following the approval by shareholders in March 2007.
Exxaro acquired the Namakwa Sands operations from Anglo American for a cash
consideration of R2 015 million and will acquire the 26% interest in Black
Mountain Mining from Anglo American for approximately R180 million, which
excludes certain price adjustments as detailed in the revised listing
particulars of Exxaro dated 9 October 2006.
Namakwa Sands` major assets include a mineral sands mine at Brand-se-Baai, a
mineral separation plant at Koekenaap and a smelter at Saldanha Bay, all
situated on the west coast of the Western Cape. The business produces 125kt of
zircon, 185kt of titania slag and 100kt of pig iron per year.
"These acquisitions position Exxaro strategically as one of the world`s top
three suppliers of high-grade titanium dioxide feedstock and zircon," said Sipho
Nkosi, Exxaro`s chief executive officer.
"Namakwa Sands is a world-class mineral sands operation with a highly skilled
workforce which we value greatly. The operation will fit well within our mineral
sands business strategy," he added.
Exxaro also operates mineral sands mining and smelter operations in KwaZulu-
Natal and has a 50% ownership in the Tiwest Joint Venture, a fully integrated
mineral sands and pigment producer in Western Australia.
The Black Mountain operation is located near the town of Aggeneys in the
Northern Cape where it mines lead, zinc, copper and silver. Some 45ktpa of zinc
concentrate is supplied to Exxaro`s zinc metal refinery in Springs, Gauteng, on
a long-term basis. The Gamsberg zinc project is potentially a large scale, low-
to medium-grade, open-pit mine located adjacent to Black Mountain, with an
estimated production capacity of 300ktpa of zinc.
"Our interest in Black Mountain and Gamsberg will strengthen our leading
position in the South African zinc market," said Nkosi.
Exxaro has a long-standing presence in the Southern African zinc industry,
owning the only zinc metal refinery in South Africa with a controlling interest
in the Rosh Pinah zinc mine in Namibia.
ends
Editor`s notes:
Exxaro is one of the largest South African-based diversified resources groups,
with interests in the coal, mineral sands, base metals, industrial minerals and
iron ore commodities.
More information, including the revised listing particulars of Exxaro dated 9
October 2006, are available on www.exxaro.com
Enquiries:
Trevor Arran
Executive General Manager: Corporate Affairs & Strategy
Tel: +27 (0) 12 307 3292
Mobile: +27 (0) 83 609 1444
Email: trevor.arran@exxaro.com
1 October 2008
Sponsor: J.P. Morgan Equities Limited
Date: 01/10/2008 16:00:02 Produced by the JSE SENS Department.
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