Diversified miner Exxaro Resources announced at its 2009 annual results presentation that it hoped to offer future competition to Kumba Iron Ore (KIO) in the local market.
Although the company also announced that it would be walking away from its iron-ore exploration efforts in Turkey, it could not ignore the potential profits that the industry had to offer.
Exxaro CEO Sipho Nkosi reported that, with the infrastructure build projects on the way in China and India, the iron-ore industry would be robust for the foreseeable future and, if Exxaro didn’t move in within the next few years, the company would have lost a significant growth opportunity.
Commenting on finding a suitable replacement project for the abandoned Turkey venture, Nkosi averred that exploration efforts were underway in South Africa, Africa and Australia.
Exxaro already has exposure to the industry through its 25% stake holding in the Sishen Iron Ore Company. However, the company is eager to develop projects on its own.
Indications of when this will take place are still unclear as, when asked about possible target dates for start of production, Exxaro executive GM Ernst Venter said that the company had defined criteria for the development of projects.
„At the moment, developing the company’s coal projects is its top priority. Obviously if the company feels that it needs to develop its iron-ore projects as a matter of priority, then it will,“ said Venter.
To watch a video in which Northam Platinum CEO Glyn Lewis tells Mining Weekly Online’s Martin Creamer that the board has approved R340m for early work on the long-awaited Booysendal platinum project, click here.