Empowerment
BILLITON PLC
JOINT MEDIA RELEASE
Richards Bay, 09:00 Tuesday 12 June 2001
R600 million Richards Bay Coal Export Terminal expansion facilitates Black
Empowerment
Richards Bay Coal Terminal Coal Company Limited (RBCT) has announced that,
together with South Dunes Coal Terminal Company (Pty) Limited (SDCT), it
intends to embark on an expansion of the Richards Bay Coal Terminal which
will cost R600 million to completion, based on the project start date of
July 2001. On completion, the total export capacity will increase by some 10
million tonnes of coal per annum, of which SDCT's entitlement will be some
6,5 million tonnes per annum.
Anglo Coal and Ingwe, the major shareholders in RBCT, will forego their
participation rights in the expansion in favour of SDCT. The parties have
indicated that black economic empowerment entities will be directly
responsible, either as producers or owners of coal, for not less than 50% of
the SDCT entitlement, giving them a meaningful stake in the world class
export facility of RBCT.
SDCT, RBCT and its shareholders have signed a Memorandum of Understanding
governing the expansion, subject to certain conditions, which include a
suitable capital funding mechanism for the expansion participants and the
conclusion of an economically sustainable export rail contract with
Spoornet.
The additional coal handling facilities to be constructed as part of the
expansion will be fully integrated into the existing Richards Bay Coal
Terminal and are expected to be commissioned at the end of 2003.
RBCT Chairman, Dave Murray, said, "The inclusion of the proposed SDCT coal
terminal at Richards Bay as an expansion of the existing RBCT facility has
been shown to be the most cost effective strategy for increasing South
Africa's coal exports.  In the face of a more competitive international coal
market, and pressure on production and transport costs, the South African
coal industry's determination to maintain its competitive position proved to
be the major motivation for this strategy."
The expansion initiative encouraged and facilitated by RBCT's largest
shareholders, Ingwe and Anglo Coal, brings to fruition the desire of SDCT to
develop a coal export facility at Richards Bay, which is integrated into the
existing export rail infrastructure.
Solly Moloko, the Chairman of SDCT, concludes, "SDCT, supported by Ingwe and
Anglo Coal, are committed to the development of black economic empowerment
and junior miners in the coal industry.  In line with government policy, we
have used the opportunity presented by the expansion project, to facilitate
black economic empowerment initiatives in the industry."
South Dunes Coal Terminal Company (Pty) Limited's shareholders are Iscor
Coal (Pty) Limited, Eskom Enterprises (Pty) Limited and Newsutu Coal (Pty)
Limited (a joint venture company established by Eskom Enterprises, Anker
Holding BV and Sebenza Mining).
Anglo Coal is the coal division of Anglo American plc.
Ingwe is the wholly owned South African coal operator of Billiton plc.
RBCT shareholders participating in the expansion are Duiker Mining, Eyesizwe
Coal, Kangra Group, Sasol Mining and Total Exploration South Africa.
Ends (464 words)
12 June 2001 / 8346c
Issued by :  Di Harvey (Public Relations Manager RBCT)
Tel.        (035) 904 4045, Fax. (035) 904 4027,
e-mail: dharvey@rbct.co.za
Enquiries:  Nigel Stevens (General Manager RBCT)
Tel.        (035) 904 4441, Fax. (035) 904 4159
e-mail: nstevens@rbct.co.za