[miningmx.com] — EXXARO Resources is looking to sell three Mpumalanga coal deposits, which it has decided are too small for the group to develop.
Exxaro business growth general manager Ernst Venter said the group wanted cash for the deposits at Arnot South, Kranspan and Vaalbult which ranged in size from around 10 million tonnes (mt) to 30mt of in-situ coal resource.
He said: “Not only are these deposits too small to be considered core assets for Exxaro but ownership of the surrounding coal properties is extremely fragmented, meaning it will be very difficult for us to put together a decent-sized mine.’
Exxaro coal general manager Mxolisi Mgojo said: “Our priority is development of our core projects in the Waterberg, such as Thabametsi and the Limpopo independent power producer scheme as well as Moranbah in Australia.’
Venter said it would be possible to produce some volumes of export quality coal from the Vaalbult and Kranspan deposits, but those operations would also have to produce Eskom-grade coal as well in order to be economically viable.
Venter declined to specify what kind of price Exxaro was looking to realise for the three deposits.
The sale is being carried out through a tender process run by Nedbank Capital.
