Latest News

Exxaro weighing choices for Australian coal JV in the middle of Anglo's scheduled exit

South Africa's Exxaro Resources is weighing its choices for its Australian coal joint endeavor project with Anglo American Plc following the mining giant's planned exit from the business, an executive stated on Tuesday.

The South African coal miner and Anglo equally own the Moranbah South metallurgical coal task in Queensland. On May 14, Anglo revealed strategies to spin off or offer its coal, nickel, diamond and platinum companies to focus mainly on energy transition metal copper.

While Exxaro is not presently evaluating any of the properties to be put up for sale by Anglo, it was examining the joint endeavor task, primary development officer Richard Lilleike said throughout a pre-close call.

We will evaluate our options under the Moranbah South joint venture agreement as and when any offers are made, Lilleike said.

Asked if Exxaro has pre-emptive rights over Moranbah, Exxaro CFO Riaan Koppeschaar stated the company was presently examining the joint venture agreement.

It's early for us to divulge whatever rights we have, Koppeschaar stated.

In 2017, Exxaro relocated to sell its stake in the task but stopped working to get attractive bids and started reassessing the prospective advancement prepare for the job in 2018 as coal rates soared.

Exxaro, which is pursuing plans to diversify away from coal into clean energy metals, especially copper, was taking the presently raised rates for the metal into factor to consider.

Copper stays basic to us in addition to lots of other mining business. However we will definitely take into account prices when we take a look at these opportunities, Lilleike stated.

In regards to what we can do to alleviate that, we are exploring partnership opportunities in addition to taking a look at investments through the cycle of the commodity and what is the appropriate stage to enter.

(source: Reuters)