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Petmin plans offshore expansion Posted: Mon, 27 Feb 2006 [miningmx.com] -- PETMIN, the coal and silica miner, will bring its Somkhele anthracite mine into full production three years earlier, said Bradley Doig, Petmin's COO. Strong demand was behind the output acceleration. In its 2005 annual report, the JSE-listed junior miner said Somkhele was to ramp up to full production of 950,000 run of mine tons per year in 2010. But Doig told Miningmx that has changed. The washing plant, with capacity for 950,000 tons of anthracite, will be hot-commissioned in November. First sales will start early in the first quarter of 2007. Somkhele is near Mtubatuba in the north of KwaZulu-Natal province. “We anticipate before the end of next year ramp up to 950,000 tons run-of-mine,” Doig said. “The quicker we accelerate that incremental tonnage, the better for the company. The product is superb and there is a lot of demand for it.” Petmin is engaged in talks with an undisclosed party to allow it to establish an international presence, said Doig. A conclusion could be reached in “a couple of months”. “We would like to give serious consideration to an international expansion strategy,” he said. “We are still engaged in talks. There is nothing further to report at this stage.” On the domestic front, there is fierce competition among black economic empowerment (BEE) entities when mineral assets become available, he said. Petmin is more than 50% empowered, well ahead of the government’s 26% requirement. The other factor weighing against Petmin concluding an acquisition soon is the peak in commodity prices. “From a methodology perspective, we don’t want to get caught up in the hype of overpaying for assets,” Doig said. “As an operating BEE company with cash-generating assets, we do have a competitive advantage and we need to take cognisance of that over the next year or two.” Somkhele’s anthracite has low sulphur and phosphorous content, which makes it ideal for use as a reductant in the ferrochrome and titanium smelting industries.Free news alerts: click here to subscribe
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