| Wed 14 Apr 2010, 8:27 | | EQS - Eqstra Holdings Limited - EQS subsidiary MCC contracts (PTY) Ltd signs |
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EQS
EQS
EQS - Eqstra Holdings Limited - EQS subsidiary MCC contracts (PTY) Ltd, signs
contract with Riversdale Mining Limited
Eqstra Holdings Limited ("Eqstra")
Incorporated in the Republic of South Africa
(Registration number 1998/011672/06)
ISIN: ZAE000117123
JSE share code: EQS
EQSTRA HOLDINGS (EQS) subsidiary MCC CONTRACTS (Pty) Ltd, SIGNS CONTRACT WITH
RIVERSDALE MINING LIMITED
MCC Contracts (Pty) Ltd ("MCC"), a wholly owned subsidiary of JSE-listed Eqstra
has signed a five year contract to mine coal at the Benga Coal Mine in
Mozambique ("Benga Coal Project") with Riversdale Mozambique Limitada
("Riversdale Mining"), a wholly owned subsidiary of Riversdale Mining Limited
(ASX:RIV), an Australian based, publicly listed company.
The contract to mine covers the open pit mining and associated services required
for the initial Stage 1 development of the project. This entails initial
production of 5.3 million ROM tonnes per year to produce approximately 1.7Mtpa
of high quality hard coking coal and 0.3Mtpa of export thermal coal.
The Benga Coal Project is Riversdale Mining`s first project in Mozambique, and
has a JORC Resource of 4 billion tonnes of coal, including premium hard coking
coal and also thermal coal. In 2009, the Government of Mozambique approved the
Mining Contract for the Benga Coal Project. Riversdale Mining and JV partner
Tata Steel (35%) subsequently announced the approval of Stage 1 of the Benga
Coal Project following the review of the feasibility study.
Riversdale Mining believes the scale of the resources at Benga allows for cost-
effective open cut mining, with the potential to produce 20 million tonnes of
coal per year for a period of more than 25 years.
Operations will commence in the second half of 2010.
The diversification into coal mining is part of Eqstra`s strategy to reduce the
group`s exposure to platinum as well as South African concentration risk. This
will ensure Dollar based income for the group, increase the African footprint
and reduce seasonal impact during the South African rainy season.
Background Note
Eqstra Holdings Limited
Eqstra Holdings Limited is an integrated capital equipment and leasing provider
with value-added services in the passenger and commercial vehicles, industrial
equipment and construction and mining markets in South Africa, Africa and the
UK.
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. MCC`s project management division offers
an all-in-one service, backed by the most sophisticated software and design
expertise to assist clients in assessing any job and recommending the right
plant at the most economical cost per unit. Project management is a service
that is equipped with experienced qualified professionals.
ENQUIRIES
Eqstra 011 966 2000
Walter Hill
MCC Contracts 011 990 6600
Mike Barnes
Johannesburg
14 April 2010
Sponsor: Merrill Lynch South Africa (Proprietary) Limited
Date: 14/04/2010 08:27:01 Produced by the JSE SENS Department.
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