Exxaro Cuts Forecast Spending 11% After Growth Projects Assessed

Exxaro Resources Ltd., a South African coal producer, cut planned capital expenditure this year by 11 percent after reviewing development projects.

Spending is expected to be about 3.1 billion rand ($256 million) compared with an earlier estimate of 3.5 billion rand, Financial Director Wim de Klerk said in a statement on Thursday.

“We continue to critically assess growth projects, taking cognizance of the timing of cash flow in order to prioritize capital accordingly,” de Klerk said in the statement.

First-half output and sales are expected to be “slightly higher” than a year earlier because of the ramp-up of the Medupi power plant being built by state-owned Eskom Holdings SOC Ltd. Volumes will be “marginally below” those of the second half of 2014 due to lower production, Exxaro said.

The company said it’s still awaiting state approval of a $472 million deal to buy Total SA’s South African coal unit.

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