JOHANNESBURG (miningweekly.com) – The South African coal assets of the JSE-listed Miranda Mineral are to be hived off into a separate ASX listing at a time of rallying coking coal prices, Miranda CEO Ron Nel said on Friday.

Nel said that both Miranda Coal and the operational assets would remain South African tax residents, and the board would seek professional advice on the potential impact of the proposed new Australian super profit tax regime.

Nel said that the separate listing would take place as the company opened its first coal mine in the KwaZulu Natal coalfields and took steps to open another in its 2010/11 financial year.

He described the assets earmarked for separate listing as the "most mature" of any in the company's four commodity groups.

Miranda assets were divisionalised into coal, diamonds, base and industrial minerals, and precious metals, after their listing as a portfolio of mineral rights and their unbundling out of the former diversified Gold Fields group.

The company's primary business is that of mineral exploration and the identification of economically viable prospects for mining.

Nel said that the separate coal listing would unlock intrinsic value not presently reflected in the share price.

"Breaking ground at Sesikhona and the preparatory work for the commissioning of Uithoek come at a time when international coking coal prices have rallied strongly and are generally expected to remain strong for the foreseeable future," Nel said.

The decision to list Miranda Coal was taken after investigating the most suitable regional domain, the valuation premium to be obtained and the quantum of capital available in the different markets.

"In addition, consideration was given to stock exchange liquidity and the nature of various markets, investor understanding and the appetite for junior mining companies, as well as the legal, fiscal and regulatory framework," Nel said.

"When all these factors had been considered, and given the current financial market conditions, the Australian domain was preferred for Miranda Coal's listing," he added.

Mineral services company Venmyn had been mandated to complete short-form technical resource and valuation statements on the Sesikhona, Uithoek, Burnside, Boschhoek, Majestic and Yarl coal projects.

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