04 Mar Exxaro will consider Anglo assets purchase
Exxaro Resources (JSE:EXX) may buy assets from Anglo American (LSE: ALL), its CEO said today.
The South African mining company which invests in iron ore and coal posted a two-thirds fall in full-year profit due to a sharp drop in commodity prices.
Exxaro CEO Mxolisi Mgojo reported considering buying Anglo assets, “As part of looking at our own portfolio we will determine whether it makes sense and if there is value.”
According to financial director Win De Klerk, there was a possibility to buy Anglo American’s Kumba Iron Ore.
The firm has a small stake in the firm that runs Sishen, one of the world’s biggest open pit mines.
Despite Exxaro saying it would pay 85 cents per share, the company’s shares increased 3 per cent to R73.46.
The company cut spending by 15 per cent to R18 billion (US$1.16 billion) on a five-year coal programme to 2020. It also plans to cut costs by R300 million in 2016.