| Fri 13 Feb 2009, 9:35 | | EQS - Eqstra Holdings - MCC Contracts A Wholly-Owned Subsidary Of Eqstra |
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EQS
EQS
EQS - Eqstra Holdings - MCC Contracts, A Wholly-Owned Subsidary Of Eqstra
Holdings (EQS) Secures Partnership With Coal Of Africa Limited On Vele
Colliery Project
Eqstra Holdings Limited
Incorporated in the Republic of South Africa
(Registration number 1998/011672/06)
ISIN: ZAE000117123
JSE share code: EQS
("Eqstra")
MCC CONTRACTS, A WHOLLY-OWNED SUBSIDARY OF EQSTRA HOLDINGS (EQS) SECURES
PARTNERSHIP WITH COAL OF AFRICA LIMITED ON VELE COLLIERY PROJECT
Eqstra shareholders are referred to the CoAL announcement released on SENS
earlier today.
MCC Contracts, a wholly-owned subsidiary of JSE-listed Eqstra has been selected
as the preferred partner to conduct opencast mining operations for Coal of
Africa Limited ("CoAL") at Vele Colliery.
CoAL is confident of MCC Contracts` ability to deliver on the volumes required.
Aspects that were considered in the selection process included areas such as
safety records, BEE compliance, past performance, cost effectiveness, funding
access, financial stability, technical skills in both mining and engineering,
machine acquisition and maintenance and ability to source local labour.
Mike Barnes, the CEO of the MCC Group, commented: "We have a long and proud
track record in opencast mining activity in a diverse range of commodities and
look forward to working with CoAL on the Vele project".
The Vele Project, in which CoAL has a 74% interest, is located in the Limpopo
Province. It is anticipated that mining will commence in Q3 2009 with 1 - 1.5
million tonnes per annum ("mtpa"), ramping up to 5mtpa of coking coal. As
announced on 24 September 2008, the Vele resource has increased appreciably to
some 721 million tonnes and this is expected to increase as drilling continues
on the edges of the known resource.
The re-entry into coal mining is part of Eqstra`s strategy to reduce the group`s
exposure to platinum. It is anticipated that the majority of equipment required
will be provided from existing fleets that are currently under-utilised due to
recent project cancellations (Lonmin) and normal project terminations
(Zimplats).
Discussions will now commence to formalise the agreements between CoAL and MCC
Contracts for mining activities to start by Q3 2009.
Eqstra will be announcing its interim results on 25 February 2009.
Background Note
Eqstra Holdings Limited
Eqstra Holdings Limited is an integrated leasing and capital equipment group
with value-added services in the passenger and commercial vehicle, industrial
equipment and construction and mining markets in South Africa, Africa and the
UK. The group was unbundled from Imperial Holdings Limited and separately listed
on JSE Limited in May 2008.
MCC Group
The MCC Group offers one of the largest fleets of opencast mining equipment in
South Africa. The group`s commitment extends to provide drilling and blasting
expertise by providing explosive technology and products to support the mining
and earthmoving industry.
ENQUIRIES
Eqstra 011 458 7814
Walter Hill
Chief executive
MCC Contracts 011 990 6600
Mike Barnes
Chief executive
Johannesburg
13 February 2009
Sponsor: Merrill Lynch South Africa (Proprietary) Limited
Date: 13/02/2009 09:35:02 Produced by the JSE SENS Department.
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