Partly due to 'negative sentiments regarding the global and local economical growth outlook'

Resources group Exxaro has decided not to exercise its right to take part in the development of the Makhado coal project with Coal of Africa Ltd.

“After serious consideration we decided not to take up the Makhado option,” the company said in a statement.

“We had to consider various alternative projects currently in our growth pipeline... and also the negative sentiments regarding the global and local economical growth outlook.” 

The Makhado project in Limpopo would have seen CoAL and JSE-listed Exxaro partner in the exploration of coal mining in the region.

“After an extensive evaluation together with CoAL, Exxaro decided not to use its pre-emptive right to a 30% interest in the project.”