HomeEnergy MineralsExxaro seeks bidders for non-core prospecting rights

Exxaro seeks bidders for non-core prospecting rights

Exxaro coal “’
prospecting rights
are up for grabs
Johannesburg, South Africa — MININGREVIEW.COM — 06 May 2011 – Exxaro Resources Limited “’ South Africa’s second-largest coal producer by output “’ says it plans to sell prospecting rights to properties containing about 200 million metric tons of reserves that it doesn’t plan to develop.
“There’s a very low probability that Exxaro will develop the assets,” finance director Wim de Klerk said here in an e-mailed reply to questions. The sale will allow the Pretoria-based company to focus on other projects, he wrote.

Exxaro called for expressions of interest in the assets, including Arnot South, Kranspan and Vaalbult in Mpumalanga province, the nation’s biggest coal region. The company plans to boost capital spending on coal and mineral sands projects threefold to US$1.2 billion this year.

Exxaro produced 47 million tons of coal last year, according to its website.

The company has a healthy project pipeline which includes coal and various energy investments.
Analysts said the Exarro might be following the example of other peers, looking for ways to finance their more lucrative projects.

“Exxaro is following companies in the United States that are selling off non-core assets to raise funds and concentrate on their core assets, which is always a wise move,” said one analyst who preferred not to be named.