Diversified South African based resources group Exxaro Resources Limited announced that it has divested from its Glen Douglas Dolomite Limited subsidiary for a total consideration of ZAR 35 million following the conclusion of a transaction with Afrimat Limited.

Exxaro has previously informed stakeholders of its intention to divest from the dolomite business as part of its prioritised commodity strategy.

In the 2009 financial year, the Glen Douglas business produced 371,000 tonne of metallurgical dolomite, 762,000 tonne of aggregate and 72,000 tonnes of lime. Revenue generated of ZAR 114 million represented 1% of Exxaro’s group revenue for the period.

The transaction is conditional upon obtaining competition approvals as well as the requisite consents under the Mineral and Petroleum Resources Development Act. Exxaro will retain operational and management control of the Glen Douglas mine until these approvals have been obtained.

Mr Sipho Nkosi CEO of Exxaro said that “The Glen Douglas operation offers significant synergies with Afrimat’s existing business. The transaction forms part of Exxaro’s commodity strategy to align existing resources to best position the group to release optimal value to stakeholders. It also offers Afrimat and Glen Douglas employees the opportunity to further develop in their core commodity markets.”

He added that “Exxaro’s commodity strategy includes a focus on our carbon-related project pipeline; a drive to increase coal export allocation and volumes to the metals markets; the development of downstream products such as char and market coke; a consideration of ways to increase our footprint in the iron ore commodity and the evaluation of a growth pipeline of renewable energy projects.”