Xstrata To Invest R13bn In South Africa

Xstrata Plc, the world’s largest exporter of coal used to generate power, may spend about 13 billion rand ($1.6 billion) over five to six years to expand production of the fossil fuel in South Africa.

The company is studying investing in the Zonnebloem coal project, currently at the conceptual stage, Jeff Gerard, chief operating officer at Xstrata Coal South Africa, said today in an interview at the Goedgevonden mine, east of Johannesburg.

Zonnebloem may cost about 5 billion rand to 6 billion rand to develop and be similar in size to Goedgevonden, which will produce 12 million metric tons when completed, he said.

Source: Bloomberg