Exxaro to Step up Nickel and Copper Mining Activity

10 November 2009 (Last Updated November 10th, 2009 18:30)

South Africa's Exxaro Resources says it intends to step up nickel and copper mining activity in Africa. Exxaro is working on the development of coal reserves in the Waterberg area of Limpopo province in South Africa, according to Reuters. The company says it will use it

South Africa's Exxaro Resources says it intends to step up nickel and copper mining activity in Africa.

Exxaro is working on the development of coal reserves in the Waterberg area of Limpopo province in South Africa, according to Reuters.

The company says it will use its own cash resources, garner capital from banks and enter into equity partnerships to develop nickel, copper, minerals sands and coal mining projects, Exxaro CEO Sipho Nkosi said.

"We have taken a view that if there is some opportunity on copper and nickel, we will get involved in that,” Nikosi said.

”We have got to go outside South Africa for iron ore, copper and nickel ... it will be within the Africa continent."

The company says it expects the Richards Bay Coal Terminal to double its port capacity in the next few years from 6.3 million tonnes at the end of 2009.

"Our plans are, probably in the next five-six years, to double that one," Nkosi said.

Exxaro is also in talks to expand the Mafutha coal mine as a joint venture with Sasol, which is likely to cost $1.61bn to $1.74bn.