MINING investment company Menar has bought Springlake Colliery, an anthracite mine previously owned by Mylotex after the operation was placed under business rescue.
The acquisition, formalised through a sale of assets agreement signed in November 2024, was officially concluded on May 1, transferring full ownership of the underground mine to Menar.
“We are optimistic about Springlake Colliery’s future, considering the growing demand for high-quality energy sources globally. This acquisition takes us forward and highlights our diversification efforts as a company,” said Menar’s MD, Vuslat Bayoglu.
Located approximately 45 kilometers from Newcastle in Dannhauser, the underground operation has capacity to produce an estimated 60,000 tons of run-of-mine anthracite monthly. The mine produces a specialised product that serves export markets across Asia, Europe, and South America, while also maintaining supply to domestic customers.
Menar regards the colliery as a strategic asset that enhances its existing portfolio and supports the company’s vision to expand its global footprint in the anthracite value chain. Anthracite, known for its high calorific value and clean-burning properties, is a preferred reductant in steel manufacturing, ferroalloy production, and other key industrial sectors.
The acquisition preserves approximately 300 direct jobs, excluding contractors. With a proven track record of successful mine turnarounds, Menar plans to invest in operational improvements to address the issues that led to the business rescue proceedings.
Company officials confirmed they intend to secure suitable customers for Springlake’s anthracite production while implementing operational enhancements to ensure the mine continues contributing to South Africa’s economy.
