Exxaro officially opens char plant

Date released: 5 November 2009

Diversified resources group Exxaro Resources Limited (Exxaro) today officially opened its char plant situated alongside the Grootegeluk coal mine at Lephalale, Limpopo province.

The opening marks Exxaro’s entry into the char market with a highly beneficiated product serving as a key ingredient in the ferroalloys manufacturing industry.

Ramp-up of the Exxaro Reductants’ char plant is on target and full production of 140ktpa of char is expected during 2010. The quality of the product is in line with market expectations and the entire production off-take has been secured. The operation has four retorts, construction of which began in August 2006.

Char is a product that contains more than 80% fixed carbon and less than 5% volatile content. It is produced from metallurgical coal that contains more than 20% volatiles. The char production process involves heating coal in an oxygen deficient atmosphere up to 900°C. During this process, the volatile content contained in the coal is driven off to produce char. Tar and liquor is recovered from the volatiles before the bulk of the gas is recycled back into the process for use as a fuel.

The char plant is Exxaro Reductants’ first business unit and is the result of Exxaro’s focus on downstream beneficiation opportunities in the coal market, specifically in the production of reductants for the ferroalloys industry.

A mixture of reductants is used in ferroalloys melting furnaces along with coal, char, coke and anthracite. Exxaro Reductants intends to grow with the industry and to eventually supply it with most of its reductant requirements.

“The plant also generates a waste gas that is burnt off and can potentially be used to generate electricity in future,” said Mxolisi Mgojo, executive general manager for Exxaro’s coal division.

Ernst Venter, executive general manager, business growth, said: “We support government’s initiative to establish and grow downstream beneficiation opportunities in South Africa. This is the first downstream beneficiation venture for Exxaro where the coal is being significantly beneficiated to produce a high value product.”

Approximately 300 jobs were created during the construction phase of the plant and 60 have been created for the operational phase.

Ends

Editor’s Note:
Exxaro is one of the largest South African-based diversified resources groups, with interests in the coal, mineral sands, base metals, industrial minerals and iron ore commodities.
www.exxaro.com

Enquiries:

Wim de Klerk
Financial Director
Tel: + 27 (0) 12 307 4848
Mobile: +27 (0) 82 652 5145
Email: wim.deklerk@exxaro.com

Jaco van Dyk
Char Plant Operations Manager
Tel: +27 (0) 14 763 9866
Mobile: +27 (0) 83 609 1029
Email: jaco.vandyk@exxaro.com

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