ARM Coal

ARM Coal was formed in July 2006 in partnership with global diversified mining group XCSA plc. The ownership structure is depicted below. In addition ARM Coal holds the following:

• access to Xstrata’s 20.9% interest and entitlement in the Richards Bay Coal Terminal (RBCT); and
• an export entitlement of 3.2 Mtpa in the phase V expansion at RBCT which is expected to be commissioned during the first half of 2009 calendar year.

Divisional structure

• *ARM Coal holds the following:
  • Access to Xstrata’s 20.9% interest and entitlement in the Richards Bay Coal Terminal (RBCT); and
  • An export entitlement of 3.2 mtpa in the Phase V expansion at the RBCT.
• **Participating Coal Business (PCB) refers to Xstrata Coal South Africa’s existing coal operations.

Operational overview – attributable to ARM

		F2011	F2010	% change	Operational target F2012
PCB sales	Mt	2.7	3.5	(23)	→
Export thermal coal sales	Mt	1.8	2.1	(14)	→
Eskom thermal coal sales	Mt	0.6	1.0	(40)	→
Local thermal coal sales	Mt	0.3	0.4	(25)	→
GGV sales	Mt	1.4	0.6	133	↑
Export thermal coal sales	Mt	0.7	0.3	133	↑
Eskom thermal coal sales	Mt	0.7	0.3	133	↑
ARM total sales	Mt	4.1	4.1	–	↑
Export thermal coal sales	Mt	2.5	2.4	4	↑
Eskom thermal coal sales	Mt	1.3	1.3	–	↑
Local thermal coal sales	Mt	0.3	0.4	(25)	↑
ARM operating margin	%	30	29	3
Cash operating profit	R million	443	376	18
PCB	R million	229	264	(13)
GGV	R million	214	112	91
Headline earnings attributable to ARM	R million	(103)	(17)	(500)
PCB	R million	(135)	(51)	(164)
GGV	R million	32	34	(6)