Coal miner Xstrata Coal South Africa has completed the sale of its Spitzkop and Tselentis collieries to the black economically empowered Imbawula for an undisclosed sum.

Imbawula, headed by directors Pius Mokgokong and Yacoob Mansoor, has acquired the Mpumalanga-based opencast and underground mining operations and supporting infrastructure, along with prospecting and mining rights in the area which support the long-term operation of the business.

Xstrata employees will be transferred to Imbawula after consultation with the represented unions.

Xstrata Coal South Africa CEO Murray Houston says that disposal of the assets allows Xstrata to focus on its core South African portfolio of large production complexes, including the ongoing development of its resource base.

Imbawula, which owns and operates various other coal mines in the region, expects the transaction to deliver significant synergies.

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