Exxaro considers halting New Clydesdale operations
JOHANNESBURG (miningweekly.com) – Diversified resources group Exxaro is considering stopping production at its New Clydesdale Colliery (NCC), in Mpumalanga, while it continues to seek a buyer for the mine.
The group has informed the relevant trade unions of its plans and a 60-day consultation process was now under way, potentially putting 402 jobs at risk.
Exxaro had initiated a divestment process for the operation in April, after an internal review of group coal assets determined that NCC was a negative-margin operation with a short mine life.
Since then, lower coal prices and exchange rate movements; mining difficulties that have led to increased mining costs at lower yields; and a shortfall of sales owing to the unique characteristics of the NCC siding, have placed the operation under further strain, prompting the group to consider halting operations.
Exxaro also on Thursday announced that it had recorded a R292-million pretax impairment loss on the carrying value of property, plant and equipment at NCC in the six months to June 30.
The group, which would publish its interim results on August 22, expected to report attributable interim earnings of between R1.98-billion and R2.29-billion, or attributable earnings a share of between R5.56 and R6.45.
This would be between 74% and 78% lower than attributable earnings in the previous half-year.
Further, headline earnings a share were expected to be between R6.27 and R7.27, representing a decrease of between 37% and 45% on that of the 2012 half-year.
Exxaro’s share price on the JSE fell by as much as 2.38%, but rebounded somewhat to trade at R150.66 a share by 15:00. This was down 1.29% on Wednesday’s close of R152.63.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
ISO-certified Condra manufactures overhead cranes, portal cranes, cantilever cranes and crane components: hoists, drives, end-carriages, brakes and...
VISIT SHOWROOM
AxFlow AQS Liquid Transfer (Pty) Ltd is an Importer and Distributor of Pumps in Southern Africa
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
