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South Africa : EXXARO inks $472m deal to acquire TOTAL's SOUTH AFRICAN coal mines.

Black-controlled mining company Exxaro will be acquiring the South African coal mines of French petroleum giant Total, creating 100% black-owned coal assets.

Exxaro has inked a binding sale and purchase agreement with Total South Africa, which is the majority shareholder of the Dorstfontein and Forzando coal mines, and South Africa s fifth largest coal producer.

Acquisition of the mines and undeveloped coal assets will be worth $472-million and it will be funded by Exxaro through its existing corporate debt facilities.

Exxaro's CEO Sipho Nkosi said, The consolidation of ownership of coal assets within South Africa is a welcome opportunity.

During last year, Total had sold 4.5-million tons of coal to India and China from the Richards Bay Coal Terminal (RBCT) and also into South Africa s domestic market.

Exxaro is to acquire 74% of Dorstfontein and Forzando, and the remaining 26% is owned by the black-controlled Mmakau Mining, which incase if the deal is ratified, should render the mines 100% black controlled. Additionally, Total owns 49% of the currently non-operative Tumelo coal mine, with the remaining shareholding also held by Mmakau.

With a resource base of 1 498-million tons of coal in the ground and 395-million tons of of run-of-mine coal resources, mines of Total carry life period of more than 20 years.

2014 Al Bawaba (Albawaba.com) Provided by SyndiGate Media Inc. ( Syndigate.info ).

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Publication:Mena Report
Geographic Code:6SOUT
Date:Jul 30, 2014
Words:226
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