XSTRATA COAL ANNOUNCES RESTRUCTURE OF
DOUGLAS TAVISTOCK JOINT VENTURE
3 March 2008, Sydney and Johannesburg
Xstrata Coal (Xstrata) announces the restructuring of its Douglas Tavistock Joint Venture (DTJV) with BHP Billiton Energy Coal South Africa (BECSA). Prior to the restructure, the Douglas and Middelburg collieries which comprise the DTJV were 84% owned and operated by BECSA and 16% owned by Xstrata South Africa.
Under the terms of the restructuring, Xstrata will acquire and manage the mining of reserves approximately equivalent to its 16% share of the DTJV, in an area contiguous to its 100% owned Arthur Taylor Colliery Open-Cast Mine (ATCOM) operations. Xstrata Coal purchased Total’s 50% share of ATCOM in December 2006.
Xstrata will also acquire approximately 16% of the major mobile equipment, including one BE1570 dragline, and will commence separate mining operations from 1 July 2009.
Xstrata Coal Chief Executive Peter Freyberg said:
“This restructuring allows us to integrate the acquired discrete reserves from the former DTJV into Xstrata Coal’s 100% owned ATCOM complex, to leverage existing infrastructure and take direct management control of the operation, which will be renamed ATCOM East. The new operation will have 157 million tonnes of coal reserves.
“The decision to operate separately allows Xstrata Coal the freedom to increase production of export and Eskom tonnage at a greater rate than previously envisaged under the former joint venture and to identify additional synergies with its existing operations in the region.”
Under the terms of the restructure, Xstrata will also recoup its original Richards Bay Coal Terminal entitlement and realise cash of $43 million on 1 July 2009. Xstrata Coal has also entered into an interim coal offtake arrangement (export and Eskom) for 18 months with BECSA, effective from 1 January 2008, and has entered into a long term supply arrangement for its share of the former DTJV’s Duhva LT Eskom Coal Supply Agreement.
The restructure of the DTJV is subject to the normal regulatory approvals.
Songezo Zibi James Rickards
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Xstrata is a producing zinc and lead company based in Switzerland.
Xstrata produces zinc, lead, bauxite, coal, cobalt, copper, gold, molybdenum, nickel and silver in Argentina, in Australia, in Botswana, in Canada, in Chile, in Colombia, in Jamaica and in Peru, develops cobalt, copper, copper , gold, lead, molybdenum, nickel, palladium, platinum, silver, uranium and zinc in Argentina, in Australia, in Canada, in Chile, in Dominican Republic, in New Caledonia and in Philippines, and holds various exploration projects in Argentina, in Australia, in Botswana, in Brazil, in Canada, in Chile, in Greenland, in Ireland, in Mexico, in Norway, in Panama, in Papua New Guinea, in Peru, in South Africa, in Turkey and in Yemen.
Its main assets in production are ALUMBRERA in Argentina, KIDD CREEK MINE (MINE D), CRAIG - ONAPING (SUDBURY) MINE, PELLETIER LAKE (STADACONA MINE), LINDSLEY MINE, NORALEX (WEST ANSIL, HORNE, ETC), STRATHCONA, KIDD CREEK DIVISION, BUCKO LAKE, FALCONBRIDGE MINE, RAGLAN, SUDBURY, BRUNSWICK MINE and KIDD in Canada, HYC MCARTHUR RIVER, MOUNT ISA LEAD ZINC SILVER, ERNEST HENRY, BOUNTY MINE, COSMOS MINE, THUNDERBOX, EMILY ANN (LAKE JOHNSTON), MT MCCLURE, MT ISA, SILVER SWAN, MT ISA BLACK STAR, MT ISA ENTERPRISE and EMILY ANN in Australia, LOMAS BAYAS and COLLAHUASI MINE in Chile, TINTAYA, ANTAMINA, ANTAMINA and ANTAMINA ZINC ORE in Peru, PHOENIX MINE (TATI NICKEL) in Botswana, PRODECO in Colombia and ST ANN BAUXITE in Jamaica, its main assets in development are LENNARD SHELF, MAGGIE HAYS, CLONCURRY COPPER and LENNARD SHELF in Australia, CERRO DE MAIMON and FALCONDO MINE in Dominican Republic, AGUA RICA and EL PACHON in Argentina, HACKETT RIVER, PREMIERE RIDGE, ONAPING DEPTH, FRASER MORGAN, NICKEL RIM SOUTH, ONAPING DEPTH, PERSEVERANCE and PD1 in Canada, LOMAS BAYAS II in Chile, KONIAMBO in New Caledonia and TAMPAKAN in Philippines and its main exploration properties are HORNE SMELTER, ISLAND COPPER, KONRAD, MARY MARCH, MEGATEM, ROBB LAKE, AKWESKWA, MUSK, CEZINC, DONKIN, TROILUS / TORTIGNY, TORTIGNY, SABIN, CHANCE, TULKS NORTH, CATFACE, GREAT BURNT LAKE, WEST ANSIL, TULK SOUTH - DOMINO, TULK EAST B ZONE, TULK SOUTH BOOMERANG, TULK EAST A ZONE, TULK LONG LAKE MAIN ZONE, SKIDDER, MATAGAMI, HEATH STEELE MINES, GASPE MINE and MONTCALM TWP PROP in Canada, BLACK ROCK, TOBY CREEK, MUSGRAVE, MOUNT PEAKE and SINCLAIR in Australia, ELMALAAN in Turkey, MANGABAL in Brazil, KABANGA in Tanzania, FRIEDA - NENA DEPOSIT in Papua New Guinea, PALLAS GREEN in Ireland and DIKOLOTI in Botswana.
Xstrata is listed in Germany and in United Kingdom. Its market capitalisation is GBX 2 893.1 billions as of today (US$ 4 497.6 billions, € 3 435.7 billions).
Its stock quote reached its lowest recent point on March 30, 2012 at GBX 1 016.42, and its highest recent level on June 15, 2012 at GBX 980.80.
Xstrata has 3 002 692 076 shares outstanding.