[miningmx.com] — XSTRATA Coal announced on Monday the sale of its Spitzkop and Tselentis collieries and supporting coal assets in Mpumalanga to the Imbawula Group.
The parties didn’t disclose the amount, but the transaction was effective from January 1, with approval from the Department of Mineral Resources and Competition Commission already obtained.
“Imbawula has acquired, as a going concern, the Spitzkop and Tselentis opencast and underground mining operations, all supporting infrastructure, including land, movable assets, buildings and coal beneficiation plants,” read an Xstrata statement. “In addition, Imbawula Mining has acquired prospecting and mining rights in the area which support the long term operation of this business.”
All affected Xstrata employees would be transferred to Imbawula.
“The disposal of these assets allows us to focus on our core portfolio of large production complexes, including the ongoing development of our existing and future resource base,” said Murray Houston, chief operating officer of Xstrata Coal South Africa.
“While this acquisition supplements our resources to support our core business, which is the supply of coal to Eskom, it also offers diversification away from Eskom with exposure to the export markets,” said Pius Mokgokong and Yacoob Mansoor, directors of Imbawula, according to a statement.
“Xstrata Coal will purchase export coal from us over a ten year period at a market related price. The benefits derived from this acquisition ensure that Imbawula will be the pre-eminent BEE coal mining company in this area, and the employees will be working in an environment filled with opportunity.”
