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Enex becomes world number 2.

Glencore International is to list its coal-mining business on the Australian Stock Exchange, in the largest public offering in the mining and metals sector thus far this year. Listing the new company, Enex Resources, should raise around A$2.5 billion. The coal-mining assets that will form Enex Resources are located in Australia and South Africa. The latter comprise essentially the company formerly known as Duiker Mining. The new company will be formed with the Australian assets, and will buy the South African assets from Glencore for an undisclosed sum, using debt.

Enex will have interests in 25 coal mines, 11 in New South Wales and 14 in South Africa's Mpumalanga Province, with consolidated marketable production totalling 39.7 Mt last year. Proven reserves total more than 1,000 Mt (roughly two thirds in Australia and one third in South Africa), sufficient for more than 20 years of production at current rates.

Enex is forecast to have consolidated production of 43.3 Mt of coal this year (40.0 Mt attributable), rising to 46.9 Mt (43.4 Mt) next year, of which around 60% will come from the Australian operations. The company will rank second overall in the world this year for the export of thermal and semi-soft coking coal, with a total of 33 Mt, behind BHP Billiton and just ahead of Rio Tinto. Its assets will include significant interests in port facilities for handling coal.

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Title Annotation:Enex Resources Corp
Publication:Mining Magazine
Article Type:Brief Article
Geographic Code:8AUST
Date:Sep 1, 2001
Words:238
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