Petmin Limited SIGNS OFF FIVE-YEAR SOMKHELE TAKE-OFF AGREEMENT (4593P)
October 24 2012 - 10:26AM
UK Regulatory
TIDMPTMN
RNS Number : 4593P
Petmin Limited
24 October 2012
PETMIN LIMITED
Incorporated in the Republic of South Africa
Registration Number 1972/001062/06
Share Code JSE: PET & ISIN: ZAE000076014
Share Code AIM: PTMN
("Petmin" or "the Company")
24 October 2012
PETMIN SIGNS OFF FIVE-YEAR SOMKHELE TAKE-OFF AGREEMENT
Petmin is pleased to announce it has entered into a five-year
take-or-pay sale agreement for 300,000 tonnes per annum of
production from the third wash plant under development at its
Somkhele anthracite mine in KwaZulu-Natal, South Africa.
The Somkhele mine produces metallurgical anthracite for domestic
and export markets. Following the commissioning of a second wash
plant in March 2012, the mine has a production capacity of 1.2
million saleable tonnes of anthracite per annum.
A third wash plant is under construction for a cost of R62
million (GBP4.4* million) and is scheduled for completion in
January 2013. The third plant is designed to process discard
arising from the two existing anthracite wash plants and will have
capacity to produce up to 500,000 tonnes of energy product annually
for the energy market.
"For no additional mining costs, the third Somkhele plant will
enable Petmin to produce 500,000 tonnes of energy product," said
Petmin's director of business development, Bradley Doig. "More than
half of that product has now been sold forward, prior to the plant
being commissioned. In line with our strategy, this provides Petmin
with good visibility of earnings into the future."
The third plant is expected to increase Somkhele's overall plant
yield from 42% to 50% and enables greater operational flexibility
at the mine. The third plant will be able to process 330 tonnes per
hour of discard from the two existing anthracite wash plants.
* Exchange rate applied: ZAR13.9061:GBP1
Enquiries:
Petmin
Bradley Doig
+27 11 706 1644
Media
Jonathon Rees
+27 76 185 1827
Sponsor and Corporate Advisor (JSE)
River Group
Andrew Lianos
+27 834 408 365
Nominated Adviser and Broker (AIM)
Macquarie Capital (Europe) Limited
Steve Baldwin
+44 20 3037 2362
Nicholas Harland
+44 20 3037 2369
River Group
Johannesburg
24 October 2012
This information is provided by RNS
The company news service from the London Stock Exchange
END
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