Exxaro Resources is the second largest producer of coal in South Africa and the diversified miner wants to increase its share in iron ore as well. As of now the company does not produce iron ore on its own and is evaluating projects in West Africa and Australia where it can take on an interest in a venture to boost its earnings.
Finance Director of the company, Wim De Klerk was speaking in Johannesburg when he announced that it was considering raising equity funding to buy the right assets. The net income of the Pretoria based company has risen from 2.4 billion rand last year to 3.2 billion rand this year.
Sales rose 22% to 9.6 billion rand for the company. Sipho Nkosi the Chief Executive officer of Exxaro Resources said that demand for most of their products was expected to remain strong and prices across their commodities continue to increase.
The company hopes to add to its asset portfolio and cash in on the price rise in iron ore. They have more than 8 billion rand available to use for acquisitions at the end of June 2011. Ernst Venter, Exxaro's growth manager said that they wanted a medium-size iron ore company, close to or in production and with bulk-up potential.
Source: Exarro Resources