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Optimum Coal is driven by achievement of clear business and people goals.

Integrity

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Media Statement - 28 July 2010 - Optimum Coal Housing Development

SENIOR AND DISABLED CITIZENS FIRST TO BENEFIT FROM R10-MILLION

OPTIMUM COAL HOUSING PROJECT

Optimum Coal, a leading black-owned and controlled JSE-listed mining and exploration company, in partnership with the Steve Tshwete Local Municipality, today delivered on the first phase of their joint housing pledge to provide houses to a 100 citizens of the Middelburg area in the Mpumalanga Province.

Tokyo Sexwale, Minister of Human Settlements, handed over twenty newly-built houses to the first beneficiaries at an official handover ceremony on the Rockdale farm near Middelburg. Ultimately the beneficiaries will represent senior citizens, including those living with disabilities.

“The imperative and journey of redressing historical and social inequalities as stated by the Constitution of the Republic of South Africa started in earnest with the adoption of the Freedom Charter. Nelson Mandela spent more than 67 years serving his community and his country. It is with this backdrop that Optimum Coal, in partnership with the Steve Tshwete Local Municipality selected beneficiaries, amongst others, that have been on the waiting list for a house since the beginning of the Madiba administration,” comments Mike Teke, CEO of Optimum Coal.

Optimum Coal and the Steve Tshwete Local Municipality carefully developed selection parameters to benefit the most vulnerable citizens of the local community.

Executive Mayor of the Steve Tshwete Local Municipality Mantlhakeng Mahlangu explains: “Some of these 100 beneficiaries have been on the housing waiting list since 1996. The beneficiaries that will benefit from the project are senior citizens, born between 1911 and 1930. Of these twenty beneficiaries, five are living with physical disabilities. The oldest of the senior citizens will be turning 99 this year.”

In 2005, a portion of the Rockdale farm was purchased by the Nkangala District Municipality from Kanhym Estates. The land is located in close proximity to an industrial area, making the designated housing development more accessible in terms of job opportunities for future residents.

The Steve Tshwete Local Municipality then undertook a comprehensive town planning process in which it established a Township on the land, comprising 3,000 stands earmarked for an integrated housing development, ranging from low-cost to middle-income units.

Mahlangu continues: “At completion, the area will be a fully-fledged township with all the necessary amenities. We are installing bulk services for water and sanitation infrastructure with assistance from the Nkangala District Municipality. We are also delighted that Optimum Coal made a further commitment as part of its Social Labour Plan objectives to reticulate a 1000 stands at Rockdale with water and sewer infrastructure.”

The development partners have gone the extra mile to ensure that beneficiaries receive high quality housing; the housing units were designed and built by three local contractors adhering to much higher standards than the basic requirements for RDP housing. The colourful two- and three bedroom units will include an open plan lounge and kitchen area, with a hot-water geysers and showers. It is also fully electrified. In the long-term the aim will be to landscape and green along the stands, in conjunction with the Steve Tswhete Local Municipality’s horticultural department.

The Steve Tswhete Local Municipality currently has a housing waiting list of 11,900. “It is Optimum Coal’s privilege to make a small contribution towards alleviating the need for decent housing conditions within the communities in which we operate. With this project we, together with our valued partner, the Steve Tshwete Local Municipality, hope to address some of the many social challenges that are faced by the people in this area. As a key business player within the greater Steve Tshwete Local Municipality, Optimum Coal will continually strive to improve the living conditions of those whose lives we touch, either directly or indirectly by our operations. The sustainability of the local community will remain one of our top priorities,” concludes Teke.

EDITORS NOTES:

OPTIMUM COAL

Formed in 2007, Optimum Coal is the sixth largest producer and the fourth largest exporter of low sulphur content thermal coal in South Africa. The company’s operations are located mainly in the Mpumalanga province and include Optimum Collieries and Koornfontein Mines in which it currently has a 96% interest.
The company’s operations include Optimum Collieries and Koornfontein Mines. Optimum Collieries is a large opencast and underground mining complex comprised of four coal production areas with a reserve base in excess of 270-million tons of run-of-mine coal, of which 191-million tons are classified as saleable coal. Koornfontein Mines is a significant underground mining operation with a reserve base of 48.3 million tons of run-of-mine coal, of which 30.7 million tons were classified as saleable.
The estimated life of the mines of Optimum Collieries is 22 years and Koornfontein 18 years respectively.
Optimum Coal is committed to transformation to greater gender and race equality in our industry. Optimum Coal manages its stable workforce without compromise to leadership. Optimum Coal sets a sterling example of real broad-based black economic empowerment. Not only is Optimum Coal majority black owned, but is a highly successful South African coal mining company with operational control also being in black hands. We have a clear transformation strategy with specific efforts to integrate transformation as part of the way we do business. Optimum Coal recognizes the role of all its stakeholders on this journey and regular communication informs all our stakeholders (internal and external) of milestones achieved in our transformation efforts.
In the year ended 30 June 2009 Optimum Coal generated revenues of R3,964.7 million, and an EBITDA of R1,439.9 million.
Optimum Coal’s export sales are made into the Asian and European markets pursuant to long-term supply agreements with BHP Billiton Energy Coal South Africa (BECSA) and Mercuria Energy Group. Export sales are shipped through the Richard’s Bay Coal Terminal (RBCT), in which Optimum has a significant interest and is the largest BEE owner. Optimum has a total of 8.4 million tons of export entitlement, of which 8 million tons are for its own use.
Optimum Coal supplies coal to, amongst others, Eskom’s Hendrina Power Station, which is an integral part of the South African coal fired electricity power grid.
Optimum Coal has strong pipeline of development projects at various stages of implementation. Additionally, exploration work continues on various ‘Greenfield’ projects to improve resource confidence with a view to prioritising Optimum Coal’s growth and development pipeline.

FURTHER MEDIA INFORMATION, ENQUIRIES OR INTERVIEW REQUESTS:

Issued by Stone on behalf and with approval of Optimum Coal
Please direct all media enquiries or interview requests to Willem Eksteen or Nicola Theunissen at 011 447 0168 or alternatively on This e-mail address is being protected from spambots. You need JavaScript enabled to view it / 083 272 6304 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it / 082 451 977