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Demand for commodities to continue - Con Fauconnier CEO Exxaro
In an interview on ClassicFM @ 18:40 on Thursday 16 August 2007
[miningmx.com] -- THE demand for commodities was to continue in the long term, said outgoing Exxaro Resources CEO Con Faucconier.
"If one looks at the fundamentals they underpin the view that there is still some mileage left in the commodities business. The demand from China is still there and the markets worldwide suggest that there are many areas not sufficiently supplied and that normally bodes well for the pricing market," said Fauconnier.
"China's economy is growing at the 11% rate, they are battling to slow down their economy and that translate into higher demand for the products we deliver to their markets."
Speaking on Classic Business, a week nightly radio broadcast, Fauconnier said further price increases in coal and iron ore were anticipated.
"We still expect further increases on those commodities, the only thing that seems to be lagging behind is our
minerals sands business," he said.
Exxaro was currently awaiting South African government's approval for the intended acquisition of Namaqua Sands, Anglo American's mineral sands business, as well as a 26% stake in Anglo's Black Mountain zinc project.
Speaking during the same interview Exxaro's incoming CEO Sipho Nkosi said the company was currently pursuing a number of projects, which were all in the feasibility study phase.
"The coal business is experiencing exciting times, we are negotiating with Eskom to have us supply the second phase of their Medupi power station with coal," said Nkosi. "Should we be successful in our negotiations, we would have 17 million tonnes of sales going to Eskom's power station from our mines."
Meanwhile, Fauconnier's shoes were to be big to fill. "I hope to emulate him, we had great times together, he did teach me some tricks and I think that it would work out," said Nkosi, who takes over as CEO on 1 September
when Fauconnier retires.
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