CIAB Market & Policy developments 2005/06 - IEA

million tonnes/year by 2010.
75. Xstrata Coal purchased a one-third share of the Cerrejon coal mine in Colombia in 2006.
Other shareholders are BHP Billiton and Anglo American. Cerrejon is the world’s largest
open cut coal mine supplying thermal coal to USA and European markets.
South Africa
76. Key developments in 2006/7 were:
Japan
• Xstrata and Total Coal SA settle deal - Xstrata bought Total Coal South Africa's
(TCSA) 50 percent stake in the two companies' former joint venture at Arthur
Taylor Colliery (ATC) and the associated Arthur Taylor Colliery Opencast Mine
(ATCOM).
• Spanish utility buys Kangra - Spanish utility, Union Fenosa, has purchased 70%
of South Africa’s Kangra Coal from Graham Beck (45%) and Shanduka (25%).
Both retain a 15% share in Kangra. Kangra operates Savmore Colliery in
Mpumalanga, which produces 3Mt/a of saleable steam coal. Kangra is a
shareholder of RBCT.
• Exxaro is born - Kumba Resources listed on the Johannesburg Stock Exchange
(JSE) as Exxaro Resources on 27 November 2006. Exxaro comprises Kumba,
Anglo American, the Industrial Development Corporation and Eyesizwe Mining
Limited. Exxaro, South Africa’s largest black-controlled company, is currently the
fourth largest coal producer and is well positioned to grow. Its long-term strategy
hinges on the advantage enjoyed in South Africa’s Waterberg coalfield, where it
has the only existing operating mine and high-quality reserves, and to satisfy
growing domestic demand for power station coal, reductants and metallurgical
coal. Exxaro Resources has suspended underground mining at New Clydesdale,
but opencast and plant operations continue.
• Anglo's new South African BEE deal - Anglo Coal has announced the creation of
Anglo Inyosi Coal, a BEE company to house current and future domestic and
export-focused coal operations within South Africa. The company is valued at R7
Billion (US$975M). Anglo Coal will hold a 73% share. Anglo Inyosi Coal is to
incorporate Kriel colliery, and the Elders, Zondagsfontein, New Largo and
Heidelberg projects. The transaction has also been designed to secure Anglo
Coal's future growth and to deliver on Anglo American's continuing commitment to
South Africa.
• BHP Billiton completes Koornfontein sale - BHP Billiton finalised the sale of
Koornfontein Mine, together with 1.5Mt per annum of RBCT entitlement to an entity
controlled by a BEE consortium led by Siyanda Resources and AKA Resources
Holdings. They paid R430M (US$60M).
77. In August 2006, Sojitz Corporation announced the increase of its interest in the Minerva
Mine in Queensland, Australia from 30% to 45%. The mine started production of thermal
and semi-soft coking coals in November 2005 at a scale of 2.5 million tonnes per annum.
78. Sumitomo Corporation announced in December 2006 that it had acquired a 1% share of
each of the two Vietnamese coal companies, Cao Son Coal Company and Deo Nai Coal
Company, each a subsidiary of Vietnam National Coal-Mineral Group (Vinacomin)
through the tender by Vinacomin. The production capacities of the two anthracite mines
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