Exxaro weighing options for Australian coal JV amid Anglo's planned exit
Exxaro Resources is weighing its options for its Australian coal joint venture project with Anglo American following the mining giant's planned exit from the business, an executive said on Tuesday.
The South African coal miner and Anglo equally own the Moranbah South metallurgical coal project in Queensland. On May 14, Anglo announced plans to spin off or sell its coal, nickel, diamond and platinum businesses to focus mainly on energy transition metal copper.
While Exxaro is not currently evaluating any of the assets to be put up for sale by Anglo, it was assessing the joint venture project, chief growth officer Richard Lilleike said during a pre-close call.
"We will review 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 said the company was currently reviewing the joint venture agreement.
"It’s premature for us to disclose whatever rights we have," Koppeschaar said.
In 2017, Exxaro moved to sell its stake in the project but failed to get attractive bids and began reassessing the potential development plan for the project in 2018 as coal prices soared.
Exxaro, which is pursuing plans to diversify away from coal into clean energy metals, especially copper, was taking the currently elevated prices for the metal into consideration.
"Copper remains fundamental to us as well as many other mining companies. But we will certainly take into account pricing when we look at these opportunities," Lilleike said.
"In terms of what we can do to mitigate that, we are exploring partnership opportunities as well as looking at investments through the cycle of the commodity and what is the appropriate stage to enter."
Comments
Projects
Latest Multimedia
Latest News
Showroom
Multotec, recognised industry leaders in metallurgy and process engineering help mining houses across the world process minerals more efficiently,...
VISIT SHOWROOM
Rooted in the hearts of South Africans, combining technology and a quest for perfection to bring you a battery of peerless standing. Willard...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
