Award of R1 billion Richards Bay Coal Terminal contract

Bateman Engineering has been awarded a major contract to the value of approximately R1.0 billion (USD 140 million) from Richards Bay Coal Terminal Company Limited (RBCT) relating to the Phase 5 expansion of the coal terminal located in Kwa-Zulu Natal, South Africa. Work will commence very shortly and the project is due to be completed in the second half of 2009.

RBCT, owned by Anglo Coal, Xtrata Coal, Eyesizwe, Ingwe, Kangra Coal, Sasol and Total Coal SA, is the largest single coal export terminal in the world. As the Managing Contractor for the project with total overall responsibility, Bateman Engineering's comprehensive services will range from detailed design through to construction and commissioning of the extended facility. The scope of the work includes provision for an additional tandem tippler for train offloading, a bucket wheel type stacker-reclaimer, associated extensions to the existing conveyor system, replacement of the terminal control system, all civil works, the rail loop extensions, as well as all other related services for the complete project.

The expansion project will enable RBCT to also handle coal from South Dunes Coal Terminal Company (whose shareholders are Kumba, Eskom and Anker Coal) and new generation emerging black empowered exporters, and will have an open allocation to cater for additional exporters with an emphasis on black empowerment.

Commenting on the award, Dr Sivi Gounden, CEO of Bateman Engineering N.V., said: "Bateman Engineering is very pleased to have been awarded this strategically significant contract. This contract is the culmination of our sound experience accumulated over many years in the provision of all the various materials-handling components that are required for a facility of this type and size. This RBCT award is without doubt an important addition to our established expertise in managing such projects, and will provide us with an excellent reference when tendering for similar projects around the world."

Kuseni Dlamini, Executive Chairman of RBCT, said: "We are delighted to have Bateman Engineering as the Managing Contractor for RBCT's Phase 5 Expansion Project, which is mainly aimed at satisfying the aspirations of all sustainable export coal producers with particular emphasis on emerging black economic empowerment exporters. This expansion will make an immense contribution to economic growth in South Africa as RBCT is one of the country's leading sources of foreign exchange."

For further information, please contact Ian McTurk, General Manager, Bulk Materials Handling, Bateman Engineered Technologies on +27-11-201-2300 or email engtech@BatemanEngineering.com.