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Coal Producer Exxaro Resources Looks to Expand into Iron Ore

By Joel ScanlonAug 21 2011

Exxaro Resources is the second largest producer of coal in South Africa and the diversified miner wants to increase its share in iron ore as well. As of now the company does not produce iron ore on its own and is evaluating projects in West Africa and Australia where it can take on an interest in a venture to boost its earnings.

Finance Director of the company, Wim De Klerk was speaking in Johannesburg when he announced that it was considering raising equity funding to buy the right assets. The net income of the Pretoria based company has risen from 2.4 billion rand last year to 3.2 billion rand this year.

Sales rose 22% to 9.6 billion rand for the company. Sipho Nkosi the Chief Executive officer of Exxaro Resources said that demand for most of their products was expected to remain strong and prices across their commodities continue to increase.

The company hopes to add to its asset portfolio and cash in on the price rise in iron ore. They have more than 8 billion rand available to use for acquisitions at the end of June 2011. Ernst Venter, Exxaro's growth manager said that they wanted a medium-size iron ore company, close to or in production and with bulk-up potential.

Source:

Exarro Resources

Written by

Joel Scanlon

Joel relocated to Australia in 1995 from the United Kingdom and spent five years working in the mining industry as an exploration geotechnician. His role involved utilizing GIS mapping and CAD software. Upon transitioning to the North Coast of NSW, Australia, Joel embarked on a career as a graphic designer at a well-known consultancy firm. Subsequently, he established a successful web services business catering to companies across the eastern seaboard of Australia. It was during this time that he conceived and launched News-Medical.Net. Joel has been an integral part of AZoNetwork since its inception in 2000. Joel possesses a keen interest in exploring the boundaries of technology, comprehending its potential impact on society, and actively engaging with AI-driven solutions and advancements.

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Scanlon, Joel. (2019, February 18). Coal Producer Exxaro Resources Looks to Expand into Iron Ore. AZoMining. Retrieved on November 23, 2024 from https://www.azomining.com/News.aspx?newsID=4767.
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Scanlon, Joel. "Coal Producer Exxaro Resources Looks to Expand into Iron Ore". AZoMining. 23 November 2024. <https://www.azomining.com/News.aspx?newsID=4767>.
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Scanlon, Joel. 2019. Coal Producer Exxaro Resources Looks to Expand into Iron Ore. AZoMining, viewed 23 November 2024, https://www.azomining.com/News.aspx?newsID=4767.