JOHANNESBURG (miningweekly.com) − Toronto-based Forbes & Manhattan Coal (Forbes Coal) on Thursday celebrated a secondary listing on the Johannesburg bourse.

CEO Stephan Theron said that the company, which owns mines in KwaZulu-Natal, sees the JSE listing as an opportunity to gain exposure to the domestic investor base.

Also, in line with the South African Reserve Bank requirements, Forbes Coal committed to a local listing with the acquisition of Slater Coal, he said in an interview with Mining Weekly Online in Johannesburg.

The miner has about $25-million cash on hand, which it would use to fund its current expansion drives at its Magdalena and Aviemore underground mines. Theron noted that the company was generating free cash on a monthly basis, which meant that it did not have to raise any funding at the moment.

Forbes Coal planned to triple production from its mines over the next three years. The company would boost production of bituminous coal at it Magdalena mine to one-million ton in the next year, while production of anthracite would also be increased from 100 000 t to 400 000 t at its Aviemore mine.

Theron said that Forbes Coal was also considering further acquisitions in Southern Africa and would be looking at other opportunities in KwaZulu Natal, Mpumalanga, as well as in neighbouring Mozambique and Zimbabwe, when more political stability and certainty is achieved.

“There are terrific opportunities in the country and region, and it is important for South Africa to keep on developing its infrastructure to keep up with the pace of commodities developments.”

Forbes has secured an allocation of 1.1-million tons of coal at the Richards Bay Coal Terminal over the next three years. The company planned to export about 70% of its coal, while the rest would go to the domestic paper, pulp, chemicals and ferroalloys industries.

Forbes Coal opened trading at R25,01c a share under the symbol FMC.
 

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