14 September 2009
EXXARO NEWS RELEASE
EXXARO WITHDRAWS
FROM IGODA COAL EXPORT VENTURE
Diversified South
African-based resources company Exxaro Resources
Limited (Exxaro) today announced that it has
withdrawn from the Igoda coal export venture with
Sasol Mining.
The decision
follows a review and prioritisation by Exxaro of its
capital expenditure and project pipeline following the global economic
downturn.
?As we communicated
during the presentation of our interim financial results last month, Exxaro has reduced its project pipeline and will focus on
the successful implementation of committed and board-approved projects, an
example being the expansion of the Grootegeluk mine
to supply Eskom?s Medupi
power station,? said Sipho Nkosi, Exxaro chief executive
officer.
The Igoda transaction, an empowerment venture between Eyesizwe Coal (now
Exxaro) and Sasol Mining, was formed in 2006
and was part of Sasol Mining?s broad-based
empowerment strategy.
?While it is disappointing that the partnership with Igoda
Coal is no longer viable for Exxaro, we
understand the impact of the tough market conditions and recognise many
companies are facing difficult decisions regarding their future investment
options,? said Hermann Wenhold,
Sasol Mining managing director.
Ends
About
Exxaro:
Exxaro is one of the largest South African-based
resources companies with interests in the coal, mineral sands, base metals and
iron ore commodities.
www.exxaro.com
Enquiries:
Wim de
Klerk
Financial director
Tel: + 27
12 307 4848
Mobile:
+27 82 652 5145
Email:
wim.deklerk@exxaro.com