[miningmx.com] — EXXARO Resources will on Monday nail its colours to
the mast and list one of its joint ventures on the New York Stock Exchange (NYSE).
Worth $3.4bn (R29bn), the paintmaking ingredient company, New Tronox, will be
listed in the US for the first time.
Exxaro has caught the attention of shareholders as it simultaneously initiates three
significant moves across three countries: the New York listing, an acquisition in the
Congo and a sale in Namibia.
“The company’s main projects are on track,’ said Sipho Nkosi, Chief Executive of
Exxaro.
The company is also involved in a joint venture with Tata Power to build a
hydroelectric plant in the Republic of Congo to supply power to Exxaro’s Mayoko iron
ore project in the country. It is also developing port capacity in the Congo so that it
can better export ore from Mayoko.
In addition, the company is discussing the extension and upgrading of rail facilities
with the Congolese government so as to transport the iron ore to that country’s port,
Pointe-Noire.
Exxaro has announced a R931m deal with Glencore involving the disposal of its
50.04% stake in the Rosh Pinah zinc mine in Namibia.
This is in line with the company’s stated aim of getting rid of non-core assets,
including its zinc operations.
Exxaro earlier this year reported a 40% positive yield in full-year profit.
South Africans who bought this share four years ago have enjoyed solid year-on-
year returns. Compound annual growth of 20% has been their bounty. The company
is liquid and relatively unencumbered as there is little debt on the balance sheet.
– City Press
