Exxaro gains a valuable share of export capacity at Richards Bay
Coal Terminal in South Africa.

TCSA is the fifth largest coal producer in South Africa and has a majority interest in two main operating complexes, Dorstfontein and Forzando, located in the Witbank coal basin in South Africa’s Mpumalanga province.

The company recorded combined sales of approximately 4.5 million metric tons (mt) last year. The majority of which was exported. TCSA also sells some of its production into the South African domestic market.

The acquisition provides Exxaro with an opportunity to acquire a large-scale, operating coal business in South Africa, which has an estimated remaining life of more than 20 years. TCSA has a remaining resource base estimated at 1.5 billion mt (in-situ) and 395 million mt of run-of-mine resources. Furthermore, TCSA’s operations are in close proximity to Exxaro’s existing Witbank operations and Exxaro has a good understanding of geological and mining conditions in the region.

The acquisition will provide Exxaro with access up to an additional 4.1 million mt/y of primary phase 1-3 RBCT entitlement. Exxaro currently leases entitlement from other operators in the industry to meet its export requirements.