Johannesburg, South Africa — MININGREVIEW.COM — 04 May 2010 – Diversified South African-based resources group Exxaro Resources Limited (Exxaro) has announced that it has divested from its Glen Douglas Dolomite (Pty) Limited subsidiary for a total consideration of R35 million, following the conclusion of a transaction with Afrimat Limited.
In a statement issued here, Exxaro pointed out that it had previously informed stakeholders of its intention to divest from the dolomite business as part of its prioritised commodity strategy.
In the 2009 financial year, the Glen Douglas business produced 371kt of metallurgical dolomite, 762kt of aggregate and 72kt of lime. Revenue generated of R114 million represented 1% of Exxaro’s group revenue for the period.
The statement added that the transaction was conditional upon obtaining competition approvals, as well as the requisite consents under the Mineral and Petroleum Resources Development Act. Exxaro would retain operational and management control of the Glen Douglas mine until those approvals had been obtained.
“The Glen Douglas operation offers significant synergies with Afrimat’s existing business. The transaction forms part of Exxaro’s commodity strategy to align existing resources to best position the group to release optimal value to stakeholders. It also offers Afrimat and Glen Douglas employees the opportunity to further develop in their core commodity markets,” said Exxaro CEO Sipho Nkosi.
“Exxaro’s commodity strategy includes a focus on our carbon-related project pipeline; a drive to increase coal export allocation and volumes to the metals markets; the development of downstream products such as char and market coke; a consideration of ways to increase our footprint in the iron ore commodity; and the evaluation of a growth pipeline of renewable energy projects,” he added.