EXXARO Resources is to sell its North Block Complex (NBC), a open cast mine in South Africa’s Mpumalanga province, to Universal Coal which will buy the asset through a 49%-owned subsidiary. The balance of the NBC will be controlled by a black-owned company, Ndalamo Resource. NBC will be managed by Universal Coal.
NBC has achieved run-of-mine production of about 3.5 million tonnes a year (Mtpa) over the past four years with sales of some 2.7Mtpa. It is located near the Arnot, Tutuka and Komati power stations of Eskom, the state-owned utility, which it supplies. Eskom has asked of suppliers to be 51% black-owned.
Universal said it planned to convert the North Block Complex into a multi-product operation after including the adjacent Paardeplaats project. The acquisition is expected to be finalised towards the end of this year. Universal also owns and operates the Kangala and New Clydesdale mines, also in Mpumalanga province.
NBC is being sold for A$18.6m (R172m).
