Exxaro pull out from coal export venture with Sasol Mining
Tuesday, 15 Sep 2009
Dow Jones reported that South Africa's Exxaro Resources Ltd has pulled out of a coal export venture with the mining arm of petrochemicals company Sasol Ltd after reviewing its capital spending plans.
Mr Sipho Nkosi CEO of Exxaro said in a statement to the Johannesburg stock exchange that "Exxaro has reduced its project pipeline and will focus on the successful implementation of committed and board-approved projects."
Mr Hermann Wenhold MD of Sasol Mining said "While it is disappointing that the partnership with Igoda Coal is no longer viable for Exxaro, we understand the impact of the tough market conditions and recognize many companies are facing difficult decisions regarding their future investment options."
Johannesburg-based Sasol in its full year earnings statement issued earlier Monday said the withdrawal of Exxaro from Igoda was a setback to the first phase of empowerment at Sasol Mining. It said it was pursuing alternatives to ensure its empowerment strategy remains intact, and that it remains compliant with South Africa's Mining Charter.
