PTMN Petmin

 

TIDMPTMN 
 
RNS Number : 7417P 
Petmin Limited 
22 July 2010 
 

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") 
 
UPDATE: APPROVAL FOR CONSTRUCTION OF R120 MILLION PLANT 
AT SOMKHELE TO DOUBLE CURRENT CAPACITY TO 1.1 MILLION 
SALES TONNES PER YEAR 
 
22 July 2010: JSE- and AIM-listed multi-commodity company 
Petmin Limited announced today that the Board has 
approved capital expenditure of R120 million for the 
construction of the second coal processing plant at its 
Somkhele mine in Kwa Zulu-Natal, South Africa. The 
construction of a second plant will double current 
production capacity to approximately 1.1 million sales 
tonnes a year. 
 
It is anticipated that the plant will be funded with a 
combination of debt (not more than 65%) and the Company's 
own cash resources. Petmin's cash resources are in excess 
of R230 million and the company's debt gearing ratio is 
less than 10%. The plant will be commissioned by 
31 December 2011. 
 
Somkhele, which lies 85 kilometres to the north-east of 
Richards Bay, is the second largest producer of high 
quality metallurgical anthracite in South Africa.  The 
additional capacity of approximately 535,000 saleable 
tonnes per annum will position Somkhele as the largest 
producer of metallurgical anthracite in the country. 
 
Ian Cockerill, Petmin's Executive Chairman from 1 July 
2010, said, "This significant organic expansion at 
Somkhele is an exciting step in Petmin's growth strategy 
reflecting both our confidence in this operation's 
ability to deliver increased production and our analysis 
of the global market ". 
 
Bradley Doig, the Petmin COO said that "Our anthracite is 
high quality and is a cost effective alternative to 
metallurgical coke in steel and ferro alloy production. 
Our current assessment of the market is that global steel 
market will continue to grow in the medium to long term 
and that there will be continued substitution of 
anthracite for other carbon sources. 
 
Somkhele is currently mining on approximately 1 400 
hectares and exploring on a further  23 000 hectares, 
with SAMREC-compliant reserves and resources of 51.2 
million tonnes.  Following an accelerated exploration 
drilling programme completed in June 2009, additional 
resources of 24 million tonnes were delineated in the 
Luhlanga, KwaQubuka and Emalehlene coal deposits which 
are in close proximity to the current processing plant. 
 
The mine, which supplies both local and overseas markets, 
has a dedicated export facility of 600,000 tonnes per 
annum at the Richards Bay Dry Bulk Terminal and is well 
positioned to grow its export market. 
 
Petmin acquired Somkhele in November 2005 and the mine 
was commissioned in June 2007. Its other assets are the 
SamQuarz silica mine and a 25% interest in the Veremo 
pig-iron project, both in Mpumalanga Province. 
 
Johannesburg 
22 July 2010 
 
Enquiries: 
Petmin 
Bradley Doig (COO) 
+27 824 597 818 
 
Nominated Advisor (AIM) 
Numis Securities Limited 
John Harrison 
+44 207 260 1000 
 
Sponsor and Corporate Advisor (JSE) 
River Group 
Andrew Lianos 
+27 834 408 365 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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