| Wed 22 Feb 2012, 8:45 | | PET - Petmin Limited - Operations update: Petmin signs renewable 600 000 Tonne |
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PET
PET
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 Produced by the JSE SENS Department.
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