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Exxaro to review capex plans

Sipho Nkosi,
Chief Executive,
Johannesburg, South Africa — MININGREVIEW.COM — 05 December 2008 – Diversified, South African-based resources group Exxaro Resources Limited (Exxaro) is reviewing all its capital expenditure plans due to the global financial crisis, but will leave the ramp-up of coal supply to a key power station untouched.

Chief executive Sipho Nkosi said the diversified miner – a leading supplier of coal to state-owned electricity utility Eskom – would re-look at all of its projects and review its investments.

“We’ve got to do that,” Nkosi told newsmen during a media briefing. "But we are locked into Medupi, as it’s a national imperative.”

Exxaro has signed a deal to supply Eskom’s Medupi power station with 14.6 million tonnes of power-grade coal per annum over the next 40 years. Medupi, which will be fully completed in the first half of 2014, is an important factor in easing the power shortage in South Africa that has affected major industries, including mining.

Nkosi also said his company would not follow other miners in South Africa who had announced around 10 000 job cuts because of the difficult economic climate and a slump in commodity prices.

“We are not looking at any retrenchments, but have to look at costs as everyone else,” he said.