Diversified South African-based resources group Exxaro Resources Limited (“Exxaro”) has concluded the sale of its Mayoko Iron Ore Project (Mayoko Project), located in the Republic of the Congo to a Congolese company, SAPRO SA.
Exxaro acquired the Mayoko Project in 2012. In June 2014 Exxaro announced the impairment of the Mayoko Project as a result of the collapse in iron ore prices, which situation is expected to continue for the foreseeable future. Following a commodity portfolio review and a number of internal and external commodity studies, the Exxaro board approved a decision in 2015 to divest from the project.
A number of expressions of interest were received. Negotiations with SAPRO SA were concluded successfully and ownership transferred on 23 September 2016.
Exxaro is one of the largest South African-based diversified resources groups, with interests in the coal, mineral sands, iron ore and energy markets. For more information visit www.exxaro.com
Executive Head: Strategy & Corporate Affairs
Tel: +27 12 307 4481
Mobile: +27 83 417 6375
26 September 2016
Letter to Ambassadors
EXXARO CONCLUDES SALE OF MAYOKO PROJECT TO REPUBLIC OF CONGO BUSINESS CONSORTIUM
Exxaro Resourced Limited is pleased to communicate the sale of its iron ore Mayoko Project in Niari Province, Republic of Congo, to SAPRO SA, a consortium of local businesses.
Following the global economic downturn and collapse of iron ore prices in 2014, Exxaro took a decision to stop all project development activities and in June 2014 announced the impairment of the Mayoko Project. It is expected that iron ore prices will remain depressed over the foreseeable future. Following a commodity portfolio review and a number of internal and external commodity studies, the Exxaro board approved a decision in 2015 to divest from the project.
A number of expressions of interest have been received over the last year. We are pleased to report that negotiations with SAPRO SA were concluded successfully and ownership transferred on 23 September.
We wish to place on record our appreciation for your office’s unflagging assistance and support for our activities in Republic of Congo over the last few years.
Chief Executive Officer
Executive Head: Growth and Portfolio Development