Media releases

9 August 2006

Richards Bay Coal Terminal company (RBCT) directors and shareholders approve the start of the Phase V expansion project

JOHANNESBURG - The Directors and Shareholders of RBCT are pleased to announce the commencement of the Phase V Expansion Project at a reduced scope. The terminal will expand from its current annual throughput capacity of 72 million tons to 91 million tons per annum.

As part of the Phase V expansion project:

• Special provision has been made to encourage a new generation of coal exporters by earmarking 4 million tons per annum for emerging BEE exporters.
• South Dunes Coal Terminal, which will be a two thirds BEE-controlled company, will take up 6 million tons per annum of the expansion.
• 9 million tons per annum of the expansion capacity will be open for tender with an emphasis on empowerment to facilitate the transformation of the South African coal export industry

he scope of the project has been reduced (from 92 million tons to 91 million tons per annum) in order to commence the expansion to meet the short to medium term export capacity requirements. Further expansions beyond 91 million tons per annum to meet long term demand will be dependent on the conclusion of negotiations with the National Ports Authority of South Africa for the additional land required together with approval by the Department of Agriculture and Environmental Affairs, Kwazulu Natal of RBCT’s environmental impact assessment application.

RBCT has appointed Alexander Forbes as the independent adjudicator for the tender process which will commence in September.

The estimated cost of the project is R1.2 billion and the expansion is expected to be completed by the end of the first half of 2009. A significant part of the goods and services required by the project is intended to be sourced from local suppliers with preferential BEE procurement. During the construction period 3 500 jobs will be created with further sustainable job creation being realised through anticipated developments in the coal mining industry.

“This project maintains RBCT’s position as the single largest export coal terminal in the world, an important consideration given that RBCT is the second largest foreign income generator for South Africa” says RBCT Chairman, Kuseni Dlamini.

FOR FURTHER INFORMATION PLEASE CONTACT:
Roz Thomas
Corporate Communications Consultants (Pty) Ltd
Tel:+27 (0) 11 783 8926
Fax: +27 (0) 11 783 7608
Email: rozt@corpcom.co.za