1 Presentation by Johan Myburgh Manager, Coal Marketing Portfolio Committee on Public Enterprises 28 JANUARY 2010
2 Exxaro - the history NAMAKWA SANDS
3 Coal fourth largest coal producer in South Africa Mineral sands one of the world's top three producers of zircon and chlorinatable TiO 2 slag Base metals only zinc producer in South Africa Iron ore 20% holding in Sishen Iron Ore Company Our commodities We are one of the largest South African diversified resources companies with coal, mineral sands, base metals and ferroalloy assets We are one of the top 40 companies on the JSE We employ about people We have access to valuable strategic assets and quality resources We are a 50%+ BEE owned business We have an extensive growth pipeline Revenue: R13,8bn* Net operating profit: R2,5bn** 2 Our current business at a glance Who are we? * Annual results for 12 months ended 31 December 2008
4 Geographical locations
5 Coal business at a glance In 2008, eight coal mines produced 44,8Mtpa of power station, steam and coking coal Power station coal is supplied to the national power utility, Eskom Grootegeluk is one of the most efficient mining operations in the world and operates the world’s largest coal beneficiation complex Exxaro is South Africa’s largest producer of metallurgical coal A strong pipeline of greenfield and expansion projects will result in Exxaro becoming one of the largest coal producers in South Africa Strategic objective is to produce 75Mtpa coal and 750kt reductants by 2015
6 Coal business Eskom is Exxaro’s largest customer by volume and revenue In 2009, Exxaro supplied 36.3 million tons to Eskom 16.5 million tons were supplied from tied mines 19.8 million tons were supplied under short to long term commercial contracts Exxaro responded effectively to the supply crisis in early 2008
7 Coal supply per power station Power station Source Exxaro contract Coal offered or being negotiated (million tons/year) Expiry MatimbaGrootegeluk Mine to 1.5 MedupiGrootegeluk Mine2050?14.5 MatlaMatla Mine Arnot Arnot Mine Mafube JV Majuba Leeuwpan Mine North Block Complex Other North Block Complex, Belfast Project, New Clydesdale Colliery Various medium term 5.6 Total to 21.6
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