News Release
Oklahoma City, Feb. 13, 2007 - The Tiwest Joint Venture partners, Tronox Incorporated (NYSE: TRX, TRX.B) subsidiary, Tronox Western Australia Pty Ltd (50% interest), and South African-based Exxaro Resources Limited (JSE Limited: EXX) subsidiary, Yalgoo Minerals Pty Ltd (50% interest), today announced plans to increase annual production capacity at the Tiwest titanium dioxide pigment plant in Kwinana, Western Australia. Engineering studies have commenced at the site, and the regulatory approval process is under way.
The Kwinana plant, with a current annual capacity of 110,000 tonnes, produces chloride process titanium dioxide (TiO2) pigment using Tronox's proprietary technology and marketed under the Tronox brand. The brownfield expansion will increase the plant's annual capacity by 40,000 to 50,000 tonnes. The companies estimate the expansion will cost in the range of US$35 million to US$45 million. The additional capacity is expected to come on line in 2009.
The additional capacity will allow Tronox to meet TiO2 demands in the rapidly growing Asia-Pacific region, which is projected to be the world's largest pigment consuming region by 2010. This increase in demand is driven primarily by China's explosive growth and increasing demands for quality of life products that contain TiO2.
"This new capacity will allow us to capture growth opportunities in the Asia-Pacific market, while meeting the needs of existing customers in this region," said Tom Adams, Tronox chairman and chief executive officer. "Tiwest, the world's largest fully integrated titanium dioxide project, is one of our most cost-effective operations, which is directly attributable to our talented Tiwest employees. I commend them for their continued contributions to our success."
"The Tiwest development will further strengthen Exxaro's prominent position in the global mineral sands industry," said Dr. Con Fauconnier, Exxaro's chief executive officer. "It complements the ramp-up under way at our South African east coast KZN Sands operation and aligns well with Exxaro's acquisition, subject to Exxaro shareholder approval and certain regulatory approvals, to acquire the Namakwa Sands business on South Africa's West Coast from Anglo American plc. These combined developments will position Exxaro strategically as one of the world's largest suppliers of titanium dioxide feed and zircon.
"We value the cooperative relationship that has developed between Tronox and Exxaro since 1995 and are pleased to be able to continue this mutually beneficial relationship with a leading pigment producer," added Dr Fauconnier.
Editor's Notes:
Tiwest
The Tiwest Joint Venture is the world's largest integrated titanium minerals production and manufacturing company. Established in 1988, Tiwest operates six sites in Western Australia. Its facilities include the Cooljarloo mineral sands mine, the Chandala synthetic rutile plant and the Kwinana titanium dioxide pigment plant. Tiwest's success has been built on the development of high quality mineral reserves and the application of sophisticated process technology. For information on Tiwest, visit www.tiwest.com.au.
Tronox
Headquartered in Oklahoma City, Tronox is the world's third-largest producer and marketer of titanium dioxide pigment, with an annual production capacity of 624,000 tonnes. Titanium dioxide pigment is an inorganic white pigment used in paint, coatings, plastics, paper and many other everyday products. The company's five pigment plants, which are located in the United States, Australia, Germany and the Netherlands, supply high-performance products to more than 1,100 customers in approximately 100 countries. In addition, Tronox produces electrolytic products, including sodium chlorate, electrolytic manganese dioxide, boron trichloride, elemental boron and lithium manganese oxide. Tronox will hold a conference call on Feb. 22 at 11 a.m. EST to discuss its fourth-quarter 2006 financial and operating results and expectations for the future. The call will follow the release of Tronox's fourth-quarter earnings on Feb. 22 at 7 a.m. EST. Details on the call are available on Tronox's website at www.tronox.com.
Exxaro
Exxaro is the largest South African-based diversified resources group, with interests in the mineral sands, coal, base metals, industrial minerals and iron ore commodities. Exxaro was formed through the re-listing on the JSE Limited of Kumba Resources in November 2006 as part of a major black economic empowerment transaction in which Kumba's iron ore assets were unbundled and listed as Kumba Iron Ore, and the non-iron ore assets were merged with the assets of Eyesizwe Coal and re-listed as Exxaro. Exxaro will release its earnings for the financial year ended Dec. 31, 2006, on Feb. 22. More information is available on www.exxaro.com.
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Forward-Looking Statements: Some information in this news release regarding Tronox's or Tronox management's intentions, beliefs or expectations, or that otherwise speak to future events, are "forward-looking statements" within the meaning of Section 27A of the Securities Exchange Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include those statements preceded by, followed by or that otherwise include the words "believes," "will," "expects," "anticipates," "intends," "estimates," "projects," "target," "budget," "goal," "plans," "objective," "outlook," "should," or similar words. Future results and developments discussed in these statements may be affected by numerous factors and risks, such as the accuracy of the assumptions that underlie the statements, the market value of Tronox's products, demand for consumer products for which Tronox's businesses supply raw materials, the financial resources of competitors, changes in laws and regulations, the ability to respond to challenges in international markets, including changes in currency exchange rates, political or economic conditions in areas where Tronox operates, trade and regulatory matters, general economic conditions, and other factors and risks identified in the Risk Factors Section of Tronox's Annual Report on Form 10-K and Form 10-Q, as filed with the U.S. Securities and Exchange Commission (SEC), and other SEC filings. Actual results and developments may differ materially from those expressed or implied in this news release. The company does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made. Investors are urged to consider closely the disclosures and risk factors in Tronox's Annual Report on Form 10-K available on Tronox's website, www.tronox.com. This also can be obtained from the SEC by calling 1-800-SEC-0330.
| Media Contact: | Robert Gibney Direct: 405-775-5105 E-mail: robert.gibney@tronox.com |
| Investor Contact: | Robert Gibney Direct: 405-775-5105 E-mail: robert.gibney@tronox.com |