Kumba Resources Limited ("Kumba Resources"), the diversified mining
group that unbundled from Iscor Limited and listed on the JSE Securities
Exchange on Monday, 26 November 2001, today confirmed that it is in
talks with Eyesizwe Limited ("Eyesizwe"). Discussions centre on the
potential for strategic co-operation between their respective coal
interests.
Eyesizwe Coal (Proprietary) Limited ("Eyesizwe Coal"), a black owned and
controlled coal and energy company, is the fourth largest coal producer
in South Africa.
The proposed deal could see the parties becoming the second largest
suppliers of coal to the South African market (38Mtpa).
"This is an exciting example of the growth and empowerment strategies
that Kumba Resources has set for itself, and is in line with our vision
of being a South African based global mining house, reflective of the
aspirations of the country. We have high regard for the management of
Eyesizwe Coal", said Con Fauconnier, Chief Executive of Kumba Resources.
Commenting on developments Eyesizwe Coal Chief Executive, Sipho Nkosi
said, "We are satisfied with the progress thus far and are enthusiastic
about a possible strategic relationship with Kumba. The process will
further enhance the inroads we are making in the mining industry and
ensure that black economic empowerment becomes a reality."
The deal could also result in the parties becoming the largest suppliers
of coal to Eskom (32Mtpa) and, with the planned expansion of the
Richard's Bay Coal Terminal, could increase their coal exports from
2Mtpa to approximately 4,5Mtpa.
Due diligence investigations are progressing well and the two parties
are confident that agreement could be reached early next year.
28 November 2001
Enquiries
Kumba Resources
Pat Mdoda, General Manager Corporate Affairs Tel: 012 307 4616
College Hill
Nick Elwes Tel: 011 447 3030
John Paul Waites
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