JOHANNESBURG (miningweekly.com) – Aim-, ASX- and JSE-listed Coal of Africa Limited (CoAL) has agreed to sell a 26% stake in its Keynote Trading and Investment subsidiary to black-owned Rothe Investment Proprietary and King Makhado Holdings.

Keynote is expected to hold the Chapudi coal project, in Limpopo, on completion of CoAL’s $75-million acquisition from joint venture partners Rio Tinto Minerals Development and Kwezi Mining.

The coal mining company said on Monday it intended to use the deal to further build on its broad-based black economic-empowerment (BBBEE) partnerships at an operational level.

The Chapudi coal project would be developed in collaboration with CoAL’s proposed BEE partners and the local constituents of the communities, as well as Terracotta Processing and Vibrant Veterans Minerals Resources.

Terracotta and Vibrant Veterans each own a 30% stake in Rothe, with the remaining 40% stake held by King Makhado, a company that represents the local communities in close proximity to the project.

“We recognise that the development of our projects needs to generate real and meaningful benefits for the local communities, the local economy and socioeconomic transformation in general,” said CoAL CEO John Wallington.

Further, the transaction with Rothe was aligned with the BBBEE requirements of the Mining Charter and the Minerals Resource and Petroleum Development Act, with 26% of the issued shares in Keynote being held by historically disadvantaged South Africans.

Completion of the Chapudi coal project acquisition remained subject to the fulfilment of the conditions precedent by April 30, 2012.
 

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.