Exxaro expects higher CAPEX spending in 1H16

South African mining company Exxaro is expected its coal CAPEX to jump by 32% in 1H16 compared to the same period the year before, as optimisation remains a focus area.

The company is expecting total CAPEX spending to be ZAR 1.27 billion for the six months to June this year, compared to ZAR 1.00 billion last year.

Of this, sustaining CAPEX will total ZAR 937 million – of which ZAR 922 million will be spent at the company’s coal operations in the Waterberg coalfield and Mpumalanga Province. Expansion CAPEX will total ZAR 336 million of which ZAR 307 million will be spent at the company’s operations in the Waterberg.

Annual CAPEX expenditure for the 2016 financial year is forecast to be ZAR2.96 billion, up from the previous forecast of ZAR 2.91 billion and FY2015 spending of 2.39 billion.

Exxaro manages six coal mines and produces 36 million tpy of coal. It owns the Grootegeluk coal mines, the only producing mine in the Waterberg coalfield and adjacent to Eskom’s existing Matimba and new Medupi power plant.

The company also owns the Arnot, Leeuwpan, Matia and North Block mines in Mpumalanga Province. A new mine – the Belfast mine – is scheduled to be commissioned by 2017 and will deliver around 2.2 million tpy of coal at full capacity.

Edited by Jonathan Rowland.

Read the article online at: https://www.worldcoal.com/mining/29062016/exxaro-expects-higher-capex-spending-in-1h16-2016-1037/