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KUMBA RESOURCES LIMITED - KUMBA`S COAL GROWTH STRATEGY MOVES AHEAD WITH TWO
MAJOR PROJECTS
KUMBA RESOURCES LIMITED
Incorporated in the Republic of South Africa
(Registration Number: 2000/011076/06)
Share Code: KMB
ISIN Number: ZAE000034310
(`Kumba`)
FOR IMMEDIATE RELEASE
27 October 2004
KUMBA`S COAL GROWTH STRATEGY MOVES AHEAD WITH TWO MAJOR PROJECTS
Diversified metals and mining company Kumba Resources Limited (Kumba) today
announced that the Kumba Board has approved construction of two South African
projects that support its strategy to grow the coal business through optimal
market positioning and resultant value growth.
The projects at the Grootegeluk and Leeuwpan coal mines, situated in Limpopo and
Mpumalanga provinces respectively, will require a combined capital expenditure
of R411 million.
A new R320 million beneficiation module at Grootegeluk will generate a further
0,7 million tons per annum (Mtpa) of semi-soft coking coal for supply to Ispat
Iscor, which announced last week that it is to construct a new coke battery at
its Newcastle plant to manufacture market coke for the expanding domestic
market. A 10-year agreement has been concluded to supply Ispat Iscor with the
product at a market-related price.
`The Grootegeluk project is expected to be completed by July 2006 and will
increase Grootegeluk`s semi-soft coking coal output to 2,5Mtpa. It will
reinforce the mine`s position as the world`s largest coal beneficiation
complex,` said Ernst Venter, Kumba`s coal business general manager.
In a second coal development, Kumba will invest R91 million to expand production
at its Leeuwpan coal mine near Delmas by 60%, boosting output from 1,7Mtpa to
2,7Mtpa. The expansion is due for completion by June 2005.
A jig plant will be constructed at Leeuwpan to supply Eskom with an additional
1Mtpa of power station coal for its Majuba power station.
The combined growth in sales tonnage from the Grootegeluk and Leeuwpan projects
will amount to 1,7Mtpa, increasing Kumba`s total coal production to 21,7Mtpa.
The South African developments follow last week`s announcement that Kumba has
signed a Heads of Agreement with Anglo Coal Australia that could lead to the
development of a major coking coal mine in the Bowen Basin of central
Queensland, Australia. The agreement covers the investigation into the joint
development of Kumba`s Moranbah South Mining Development Lease in combination
with the southern portion of Anglo Coal Australia`s adjacent Grosvenor lease.
ends
Note
Kumba Resources Limited, one of the largest South African-based mining companies
listed on the JSE Securities Exchange, is a focused metals and mining company
with a diverse commodity portfolio consisting of iron ore, heavy minerals, coal,
base metals and industrial minerals. www.kumbaresources.com
For more information:
Ernst Venter
General Manager: Kumba Coal
Tel: +27 (0)12 307 4322
Mobile: +27 (0)83 609 1313
Trevor Arran
General Manager: Investor Relations
Tel: +27 (0)12 307 3292
Mobile: +27 (0)83 609 1444
Date: 27/10/2004 08:00:03 AM
Produced by the JSE SENS Department
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