Exxaro increased its total coal production 4.7% to 22.4-million tonnes in the six months to end-June from the matching period in 2016, the mining group said in a production update on Monday morning. Exxaro also gave an update on the progress of the replacement of its black economic empowerment (BEE) initiative, which sparked a row with then acting Eskom CEO Matshela Koko in January. Exxaro said the state-owned Industrial Development Corporation (IDC) had agreed on Sunday to move its 12.3-million existing Exxaro shares valued at about R1bn to the new entity. The new BEE special purpose vehicle — which Exxaro was forced to create after its empowerment partners that owned more than half of the company under the previous scheme opted to sell their shares at the end of the lock-in period — would own 30% of Exxaro worth about R8.7bn. Exxaro said the new empowerment deal it was proposing would result in an 7.4% dilution to existing shareholders. Sales to Eskom are expected to increase by 3...
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