Pan African defends Uitkomst bid

[miningmx.com] – PAN African Resources CEO, Cobus Loots, has defended his company’s decision to buy the Uitkomst coal mine out of mothballs saying that income from selling the fuel will give the gold firm an advantage that no other peer company would have in South Africa.

“If we can get Uitkomst to take care of the rest of our corporate costs then we’ll have a competitive advantrage no other gold miner has,’ said Loots in an interview with BDLive. Pan African Resources, listed in Johannesburg, operates two gold mines in South Africa.

“We are not seeking to diversify any further, but the way we think about … Uitkomst is that they’re specialised assets where we understand the markets and we are subsiding our corporate costs and reducing costs at our gold operations,’ he said. Pan African Resources bought the colliery, situated in KwaZulu-Natal province, from Shanduka Resources for R200m in June.

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