JOHANNESBURG (miningweekly.com) – The Competition Commission on Wednesday gave an unconditional green light for the buyout of diversified miner Exxaro Coal’s Inyanda colliery business, in Mpumalanga, by joint venture (JV) partners Lurco Group and Burgh Group.
The JV, Inyanda Mining Holdings, also titled Main Street, will take control of the full assets, including the mining right, a 200 000 t/m washing plant and a private rail siding, for an undisclosed amount.
“The commission found that the proposed transaction is unlikely to substantially prevent or lessen competition in the defined markets for the supply of coal,” the commission said in a statement on Wednesday.
Coal resources at the flagship Inyanda mine were depleted late in 2015, with Exxaro and the JV entering a sale and purchase agreement in December.
The JV aims to beneficiate coal for use by State-owned power utility Eskom and the export market.
Lurco sources coal from collieries and beneficiates it for sale into the export market, while Burgh’s core interests lie in coal mining, marketing and mining equipment and it is involved in thermal coal mining and beneficiation.