[miningmx.com] — THE Competition Tribunal has approved Petmin’s
R259m transaction to dispose of the SamQuarz silica mine following an appeal
against the Competition Commission’s earlier decision to prohibit the sale.
The Tribunal’s ruling on Friday, along with Section 11 approval for the sale from the
Department of Mineral Resources, has made the deal unconditional as at June 29.
The disposal of SamQuarz to Thaba Chueu was announced in September 2011.
The proceeds from the sale equate to an average net return for Petmin of 45% year-
on-year, after tax, for the six years since it acquired the operation for R85m, the
company said.
“Thaba Chueu has acquired a good asset and Petmin has made a good return,’ said
Bradley Doig, the Petmin director who is responsible for operations and expansion
abroad.
SamQuarz, near Delmas in Mpumalanga, is the largest producer of high-quality silica
in South Africa and a key supplier to the clear glass and metallurgical industries. It
has stable production of 1.1 million tonnes per annum and a life of mine in excess of
40 years.
Proceeds from the disposal will help fund Petmin’s organic growth and current
projects, which focus on commodities in the steel value chain required for
urbanisation and infrastructure development, the company said.
