[miningmx.com] — WESCOAL Holdings is to sell its Blesboklaagte washing plant in Witbank for R15m to Slater Coal Marketing, a subsidiary of Forbes Coal which listed on in Johannesburg last month.
The purchase price will be settled through an initiation cash settlement of R6m and the balance of R9m payable in three equal monthly payments of R3m each. “The inflow of cash into the business will be used to for opportunities we are investigating and the transaction is earnings enhancing to Wescoal to the value of 22,2 cents per share’ said Andre Boje, CEO of Wescoal Holdings.
“The coal washing operations at Blesboklaagte were unprofitable during previous financial years and a decision was made to close the plant on 31 March 2011. Since then Wescoal has begun a comprehensive restructuring programme to restore operations and strengthen its financial position,’ Boje said.
