PAYMENT of the balance due following the R179.9m acquisition of MC Mining’s (MCM’s) Mooiplaats colliery in Mpumalanga province has begun as per the agreement schedule after the Department of Mineral Resources approved certain aspects of the transaction.
MCM said today that R11.3m of the outstanding R112.9m had been received following approval of the Section 102 application which grants, among other things, prospecting rights into the colliery’s mining right.
The colliery was purchased by the MCH consortium which consists of a broad church of interests, including former Continental Coal and BHP Billiton executive, Don Turvey, and Sipho Nkosi, the former CEO of Exxaro Resources. MCH will also consist of miners employed at Mooiplaats when it re-opens as well as community representatives and young black professionals.
The transaction to buy Mooiplaats was first unveiled in October last year. An upfront cash consideration of R68m was paid by the consortium.
“The Section 102 approval was the final requirement to complete the Mooiplaats sales process that commenced during 2013 and is another significant step in the clean-up of the company’s balance sheet,” said David Brown, CEO of MC Mining. “The Mooiplaats disposal will result in estimated annual cost savings of R18m and the quarterly payments will be used to develop MC Mining’s flagship Makhado hard coking coal project,” he said.
