| Wed 9 Dec 2009, 8:53 | | ARI - African Rainbow Minerals Limited - XSTRATA/ARM Coal`s Goedgevonden Signs |
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ARI
ARIM
ARI - African Rainbow Minerals Limited - XSTRATA/ARM Coal`s Goedgevonden Signs
17 Year Supply Agreement with Eskom
African Rainbow Minerals Limited
(Incorporated in the Republic of South Africa)
(Registration number 1933/004580/06)
JSE Share code: ARI
ISIN: ZAE000054045
("ARM" or the "Company")
XSTRATA/ARM COAL`S GOEDGEVONDEN SIGNS 17 YEAR SUPPLY AGREEMENT WITH ESKOM
The 6.7 million tonne per annum Goedgevonden Colliery, a joint venture between
ARM Coal and Xstrata Coal, has signed a 17-year coal supply agreement with
national power utility, Eskom.
Under the terms of the contract, Goedgevonden will supply approximately 60
million tonnes of thermal coal (3.5 million tonnes per annum) to Eskom`s Majuba
coal-fired power station from December 2009 through to 2026.
Murray Houston, Xstrata Coal South Africa`s Chief Operating Officer said the
contract is an important milestone for the greenfield Goedgevonden open cut
operation.
"This is a significant achievement for the Goedgevonden operation and underlines
our position as a major supplier of quality thermal coal to both the domestic
and export markets," said Mr Houston.
ARM Coal Chief Executive, Mangisi Gule said the successful transformation of
Goedgevonden from a greenfield project to a fully operational colliery, is a
major step in the growth of ARM Coal.
"Reliable coal supply is absolutely essential for Eskom`s success. Goedgevonden
is well placed to help meet the immediate needs of Majuba, while maintaining the
flexibility to meet potential increased demand in the future if necessary," said
Mr Gule.
Located in the Witbank coalfield in the Mpumalanga province, the Goedgevonden
mine will commence supplying coal to Eskom immediately.
ENDS
Note to Editors:
ABOUT GOEDGEVONDEN
Goedgevonden Colliery is the flagship asset of the ARM Coal and Xstrata
partnership, and has been developed at a cost of just over R3 billion. Its 6.7
annual capacity will be split almost equally between Eskom supply and export
through the Richards Bay Coal Terminal. Goedgevonden is 51% owned by ARM Coal
and 49% by Xstrata. The mine is overseen by a management committee comprising
four ARM Coal and three Xstrata executives respectively.
ABOUT ARM Coal
ARM Coal was formed in 2006, a 51%-49% partnership between ARM and Xstrata Coal
South Africa.
ABOUT XSTRATA COAL SOUTH AFRICA
XCSA is South Africa`s third largest exporter of thermal coal, with operations
across the Mpumalanga coal fields in Ogies, Witbank, Middelburg, Ermelo and
Breyten.
Xstrata contacts
James Rickards
Telephone +61 2 9253 6789
Mobile +61 419 731 371
Email jrickards@xstratacoal.com
Songezo Zibi
Telephone +27 11 250 0064
Mobile +27 82 3038 176
Email szibi@xstrata.co.za
ARM contacts
Jongisa Klaas
Telephone +27 11 779 1507
Mobile +27 82 562 5288
Email jongisa.klaas@arm.co.za
Corne Dippenaar
Telephone +27 11 779 1478
Mobile +27 83 380 6614
Email corne.dippenaar@arm.co.za
Johannesburg
9 December 2009
Issued by sponsor: Deutsche Securities (SA) (Proprietary) Limited
Date: 09/12/2009 08:53:01 Produced by the JSE SENS Department.
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