Exxaro forms IPP with India’s Tata Power

[miningmx.com] – EXXARO Resources has wasted no time launching its
energy division, unveiling on Monday a joint venture with India’s Tata Power that will
establish an independent power producer (IPP) serving South Africa, Botswana and
Namibia.

The new company, Cennergi Ltd, will be owned 50:50 with Tata Power and will focus
on investigating electricity-generation projects. Its strategy is to create a portfolio of
generation assets, Exxaro said in a statement. It will be launched officially in April.

“Cennergi has been created by companies from developing nations to serve
developing nations,’ said Exxaro CEO, Sipho Nkosi. “We expect Cennergi to play a key
role in the African electricity generation market.

“This partnership with Tata Power will add the skills and capabilities necessary to
create a world class energy company in this region with enormous growth
opportunities’, he added.

Exxaro said last month, at its full-year results presentation, that the development of
an energy division was one of four pillars on which its business growth rested.
It said it intended submitting five renewable energy projects in an effort to help the
South African government procure 3,725 MW of renewable energy electricity from the
private sector.

The projects would be submitted in the second window of submission, due to close
today (March 5), through the energy department’s “Request for Qualification and
Proposals for new Generation Capacity’. This is under the IPP Procurement Programme
issued on August 3, Exxaro said.

The five projects entail two solar projects and three wind projects.

Anil Sardana, MD of Tata Power, said of the joint venture with Exxaro: “The joint
venture is consistent with our strategy of pursuing exploration opportunities for
energy development in growing markets.’ He said Tata Power would be able to pursue
business opportunities “holistically’ through the joint venture.