JSE-listed coal-mining services company, Sentula, on Thursday announced the finalisation of its acquisition of a 49,998% stake in the Koornfontein coal mine in Mpumalanga, for R150-million, as all conditions precedent were met.

Early in 2007, diversified miner BHP Billiton sold a 49,998% stake in the Koornfontein mine to Investec Bank and Coronation Capital, and a 50,002% stake to a black economic-empowerment consortium led by Siyanda Resources.

Koornfontein would provide a Richards Bay export entitlement of 1,5-million t/y of coal, and was viewed as a good base for the development of nearby coal resources including those of Merafe Coal, which is nearby.

It is also next to Eskom's Komati power station, which provided an opportunity to supply coal to that power station.

"The transaction will optimise Sentula's exposure to high quality operations and capitalise on the continued strong demand for coal and mining services," the company said in a statement.

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