Exxaro, a diversified mining company, is seizing the opportunity presented in the latest iteration of SA’s Mining Charter to extract itself from mineral sands miner and processor Tronox, realising billions of rand in value. Exxaro had already told the market about its exit plans earlier this week, but a briefing by financial director Riaan Koppeschaar on Wednesday gave insight into the company’s thinking about its disposal strategy as agreed with Tronox which will happen in 2019. As part of a 2012 agreement, Tronox bought mineral sands operations in SA from Exxaro and kept the miner as its black economic empowerment partner. The agreement was that Exxaro would remain locked in until 2022 or until an empowerment partner was no longer required. The third iteration of the charter gazetted in June, which lays out the transformation requirements mining companies are obliged to meet to secure their mining and prospecting rights, has made an important concession to mining companies regardi...
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