|
PET
PET
PET - Petmin Limited - Update: approval for construction of R120 million plant
at Somkhele to double current capacity to 1.1 million sales tonnes per year
PETMIN LIMITED
Incorporated in the Republic of South Africa
Registration Number 1972/001062/06
Share Code JSE: PET & ISIN: ZAE000076014
Share Code AIM: PTMN
("Petmin" or "the Company")
UPDATE: APPROVAL FOR CONSTRUCTION OF R120 MILLION PLANT
AT SOMKHELE TO DOUBLE CURRENT CAPACITY TO 1.1 MILLION
SALES TONNES PER YEAR
22 July 2010: JSE- and AIM-listed multi-commodity company
Petmin Limited announced today that the Board has
approved capital expenditure of R120 million for the
construction of the second coal processing plant at its
Somkhele mine in Kwa Zulu-Natal, South Africa. The
construction of a second plant will double current
production capacity to approximately 1.1 million sales
tonnes a year.
It is anticipated that the plant will be funded with a
combination of debt (not more than 65%) and the Company`s
own cash resources. Petmin`s cash resources are in excess
of R230 million and the company`s debt gearing ratio is
less than 10%. The plant will be commissioned by
31 December 2011.
Somkhele, which lies 85 kilometres to the north-east of
Richards Bay, is the second largest producer of high
quality metallurgical anthracite in South Africa. The
additional capacity of approximately 535,000 saleable
tonnes per annum will position Somkhele as the largest
producer of metallurgical anthracite in the country.
Ian Cockerill, Petmin`s Executive Chairman from 1 July
2010, said, "This significant organic expansion at
Somkhele is an exciting step in Petmin`s growth strategy
reflecting both our confidence in this operation`s
ability to deliver increased production and our analysis
of the global market ".
Bradley Doig, the Petmin COO said that "Our anthracite is
high quality and is a cost effective alternative to
metallurgical coke in steel and ferro alloy production.
Our current assessment of the market is that global steel
market will continue to grow in the medium to long term
and that there will be continued substitution of
anthracite for other carbon sources.
Somkhele is currently mining on approximately 1 400
hectares and exploring on a further 23 000 hectares,
with SAMREC-compliant reserves and resources of 51.2
million tonnes. Following an accelerated exploration
drilling programme completed in June 2009, additional
resources of 24 million tonnes were delineated in the
Luhlanga, KwaQubuka and Emalehlene coal deposits which
are in close proximity to the current processing plant.
The mine, which supplies both local and overseas markets,
has a dedicated export facility of 600,000 tonnes per
annum at the Richards Bay Dry Bulk Terminal and is well
positioned to grow its export market.
Petmin acquired Somkhele in November 2005 and the mine
was commissioned in June 2007. Its other assets are the
SamQuarz silica mine and a 25% interest in the Veremo
pig-iron project, both in Mpumalanga Province.
Johannesburg
22 July 2010
Enquiries:
Petmin
Bradley Doig (COO)
+27 824 597 818
Nominated Advisor (AIM)
Numis Securities Limited
John Harrison
+44 207 260 1000
Sponsor and Corporate Advisor (JSE)
River Group
Andrew Lianos
+27 834 408 365
Date: 22/07/2010 09:09:02 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS. |
|