Media releases

10 May 2007

Richards Bay Coal Terminal Company Limited announces successful applicants in the phase V expansion (9Mt/a)

Today, 10 May 2007, Richards Bay Coal Terminal Company Limited (“RBCT”) announced the final results of the adjudication process of tenders in respect of 9 million tons of coal export throughput capacity that will be made available on completion of the Phase V expansion.

The Phase V Expansion will increase the capacity of RBCT by 19 million tons per annum, from the current design capacity of 72 million tons per annum to 91 million tons per annum.

Allocation of the expansion volume:

  1. 9 million tons per annum of the expansion capacity was open for tender with specific emphasis on black economic empowerment (“BEE”) in order to facilitate the transformation of the South African coal export industry.
  2. Special provision was made to encourage a new generation of coal exporters by earmarking 4 million tons per annum for emerging BEE exporters.
  3. South Dunes Coal Terminal Company (Pty) Limited (“SDCT”), a BEE-controlled company, will take up 6 million tons per annum of the expansion which was funded by it.

In a joint presentation by Alexander Forbes Risk Management Services (“the Independent Adjudicator”) and RBCT Management the results were presented to the Directors at an RBCT Board meeting this morning. Applicants were also subsequently advised as to the outcome of the process in respect of their applications.

In the final analysis of the process:

  1. 51 sets of application documents were issued
  2. 26 completed applications were received
  3. 26.85 million tons per annum of export coal allocation was applied for
  4. of the 26 completed applications, 18 met all the pre-qualification criteria, accounting for 19.05 million tons per annum of export coal allocation

Final outcome:

  1. 8 successful applicants
  2. 6 of the 8 applicants as shareholders (8.15 million tons per annum)
  3. 2 of the 8 applicants as long term commercial users (0.85 million tons per annum)
  4. 7 of the applicants are linked to existing Quattro users
  5. 3 of the applicants are associated with existing RBCT shareholders

The successful applicants are summarized as follows:

Applicant Name

Application Mtpa

Mode of Access

Yomhlaba Resources Limited

0,50

Shareholder

Mbokodo Mining (Pty) Limited

0,50

Long term commercial user

Umcebo Mining (Pty) Limited

1,00

Shareholder

ARM Coal (Pty) Limited

3,20

Shareholder

Tumelo Coal Mines (Pty) Limited

0,60

Shareholder

Mmakau Mining (Pty) Limited

0,35

Shareholder

Exxaro Coal (Pty) Limited

2,50

Shareholder

Worldwide Coal Carolina (Pty) Limited

0,35

Long term commercial user












A positive spin-off from the above result is that Quattro users migrating to a combination of Shareholding and Commercial User arrangements will free up 1 million tons per annum in the Quattro allocation. This volume will be made available to emerging BEE exporters post Phase V commissioning date.

Asked whether the process had achieved its original objectives: Kuseni Dlamini. Executive Chairman responded that . "The outcome of the process is firmly in line with our vision of enabling as many BEE players as possible to have access to the global coal market. We believe this will contribute to South Africa's growth and development while enabling South Africa to increase its share of the global coal market. The process undertaken is the first clear indication of what the real South African coal export capacity demand is and this has definitely exceeded our expectations."

FOR FURTHER INFORMATION PLEASE CONTACT:
Zama Luthuli
Corporate Affairs Manager
Tel: (035) 904 4911
Fax: (035) 783 7608
Cell: 083 399 3111
Email:zluthuli@rbct.co.za

ON BEHALF OF:
Kuseni Dlamini
Executive Chairman
Richards Bay Coal Terminal Company Limited

ABOUT RICHARDS BAY COAL TERMINAL COMPANY LIMITED

Richards Bay Coal Terminal Company Limited is the single largest coal export terminal in the world. The organisation, formed in 1976, is a collaborative effort by Anglo Operations Limited, Eyesizwe Coal (Pty) Limited, BHP Billiton Energy Coal South Africa Limited, Kangra Coal (Pty) Limited, Sasol Mining (Pty) Limited, Total Coal South Africa (Pty) Limited and Xstrata South Africa (Pty) Limited, to own and operate the high volume rapid loading facility envisaged for export coal.



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