https://www.miningweekly.com

Universal Coal acquires stake in third operation

8th March 2018

By: Nadine James

Features Deputy Editor

     

Font size: - +

JOHANNESBURG (miningweekly.com) – ASX-listed Universal Coal has, through a 49% owned subsidiary, entered into an agreement to buy Exxaro Coal’s North Block Complex assets, in Mpumalanga.

Universal and joint venture partner Ndalamo Resource have recently established a new company North Block Complex Proprietary Limited (NBC) to acquire the assets from Exxaro. NBC will be managed by Universal.

The fully operational North Block Complex was acquired by NBC for about A$18.6-million.

The acquisition follows Universal’s strong performance in the six months to December 31, which resulted in a 124% year-on-year increase in revenue to A$136.5-million, and a reduction in net debt from A$14.7-million to A$6.7-million.

The North Block Complex is an opencast operation located in proximity to South African State-owned utility Eskom’s Arnot, Tutuka and Komati power stations. It has historically achieved average run-of-mine (RoM) production of about 3.5-million tons a year over the past four years with sales of about 2.7-million tons a year.

Historical production from the North Block Complex was primarily sold into the domestic power station market, with a small amount of higher-value-sized product sold to traders.

Universal on Thursday noted that it plans to convert the North Block Complex into a multiproduct operation with the inclusion of the adjacent Paardeplaats project, pending relevant regulatory approvals and permits.

The company noted that the transaction is consistent with its diversification strategy and meets acquisition criteria of being immediately or near-term earnings per share accretive.

The acquisition is expected to be finalised towards the end of this year.

Universal also owns and operates the Kangala and New Clydesdale mines, in Mpumalanga.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 
Stewarts & Lloyds
Stewarts & Lloyds

Stewarts & Lloyds today supplies steel and tube, pipe and fittings, valves, pumps, irrigation, fencing, profiling and roofing products. The cash...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.213 0.251s - 106pq - 2rq
Subscribe Now