JOINT NEWS RELEASE
For immediate release
27 March 2008
EXXARO RESOURCES LIMITED & TRONOX INCORPORATED
Exxaro and Tronox boards of directors approve
expansion of Tiwest titanium dioxide plant in Kwinana, Western
Australia
Diversified resources group Exxaro
Resources Limited (Exxaro) and United States-based Tronox Incorporated have announced that the boards of
directors of both companies have given approval for the expansion of their Tiwest joint venture titanium dioxide (TiO2)
pigment plant in Kwinana,
Western Australia.
With expectations for continued strong demand growth
in the Asia-Pacific region, the expansion will allow Tiwest
to capture future opportunities in this rapidly growing market. The project,
which will increase the plant’s current annual capacity from 110ktpa to
around 150ktpa, is expected to cost about A$100 million.
Tiwest plans to begin construction during 2008, subject to
appropriate regulatory approvals. The additional capacity is expected to come
on line in early 2010.
The joint venture partners have signed an agreement
under which Exxaro will provide ongoing funding for
the expansion. Tronox has the option to contribute
its share of the capital at its discretion throughout the project and until a
date two years from commissioning, which will be taken into account when
calculating its final interest in the expanded production.
The Kwinana plant, with a
current annual capacity of 110kt, produces chloride process titanium dioxide
(TiO2) pigment using Tronox’s
proprietary technology and marketed under the TRONOX®
brand.
“The Tiwest development
is an important contribution to Exxaro’s
strategy of downstream value adding in our mineral sands business,” said Sipho Nkosi,
Exxaro’s chief executive officer. Together with
the South African east coast KZN Sands operation and the soon to be completed
acquisition of the Namakwa Sands business on South Africa’s
west coast, the combined developments position Exxaro
as a major supplier to the titanium and zircon industries.
“This expansion will provide us with the
additional capacity needed to meet the future demands of our existing customers
and prospective new customers in the Asia-Pacific region, which is projected to
be the world’s largest pigment consuming region in 2008 and
beyond,” said Tom Adams, Tronox chairman and
chief executive officer.
Editor’s Notes:
Tiwest
Tiwest is a 50:50 joint venture between Exxaro
and Tronox Inc. It is the world’s largest
integrated titanium minerals production and manufacturing company.
Established in 1988, Tiwest operates in Western Australia.
Its facilities include the Cooljarloo mineral sands
mine, the Chandala synthetic rutile
plant and the Kwinana titanium dioxide pigment
plant. Tiwest’s success has been built on
the development of high quality mineral reserves and the application of
sophisticated process technology. For information on Tiwest,
visit www.tiwest.com.au
Exxaro
Exxaro is one of the largest South African-based
diversified resources groups, with interests in the mineral sands, coal, base
metals, industrial minerals and iron ore commodities. Exxaro was formed through the re-listing on
the JSE Limited of Kumba Resources in November 2006
as part of a major black economic empowerment transaction in which Kumba’s iron ore assets were unbundled and listed as Kumba Iron Ore, and the non-iron ore assets were merged
with the assets of Eyesizwe Coal and re-listed as Exxaro. More information is
available on www.exxaro.com
Tronox
Headquartered in Oklahoma City, Tronox is the world’s third-largest
producer and marketer of titanium dioxide pigment, with an annual production
capacity of 642kt. Titanium dioxide pigment is an
inorganic white pigment used in paint, coatings, plastics, paper and many other
everyday products. The company’s five pigment plants, which
are located in the United States, Australia, Germany and the Netherlands,
supply high-performance products to approximately 1 100 customers in 100
countries. In addition, Tronox produces electrolytic products, including sodium chlorate,
electrolytic manganese dioxide, boron trichloride,
elemental boron and lithium
manganese oxide. For additional
information on Tronox, visit www.tronox.com
For
enquiries:
Exxaro
Executive General Manager: Corporate Affairs & Investor Relations
Trevor Arran
Tel: +27 12 307 3292
Mobile: +27 83 609 1444
E-mail: trevor.arran@exxaro.com
Tronox
Investor
Relations:
Media:
Robert Gibney
Debbie Schramm
405-775-5105
405-775-5177 (cell: 405-830-6937)
E-mail: robert.gibney@tronox.com
E-mail: debbie.schramm@tronox.com
