Exarro parks platinum plans

2012-08-11 14:19

Empowerment mining group Exarro would rather close the projects in which it is already involved than be tempted to invest in the beleaguered platinum market in the short term, says group CEO Sipho Nkosi.

Exarro this week released its results for the six months to June.

Core net operating profit was up by 42%, headline earnings per share rose 11% to R11.62 a share and an interim dividend of R3.50 a share, up 17%.

The positive results caused speculation that the company would consider buying platinum mines because the poor performance of the commodity had made it a good time to acquire the assets.

Nkosi told City Press this week that as a mining company, they would always pay attention to possible investments in their area of business but that platinum was very low on their list of targets right now.

“Platinum is at its cheapest and as a mining company we cannot not look at it. But we cannot run around not closing the projects we already have,” said Nkosi.

Exarro has a R9.5-billion investment in Eskom’s new power station Medupe and spent R2.4 billion developing a new mine in Richards Bay, KwaZulu-Natal.

It put up $3.4 billion (about R29 billion) to partner with US-based paintmaking ingredient company, New Tronox.

A paint-making plant in South Africa is a distinct possibility as a result of this deal.

The company is also involved in a joint venture with India’s Tata Power and Exxaro Resources to build renewable energy plants in Eastern Cape and Western Cape.

It has invested R3 billion acquiring an iron-ore mine in the Democratic Republic of the Congo and a further R3 billion on infrastructure around the mine which includes building and upgrades.

Nkosi said: “People have been saying that empowerment has failed. We believeit works.

“We are an empowerment company and we are investing not only in the country but on the continent as well.
“We are not saying ours is the only model that works but we are saying we know ours works.”

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.