JSE-listed Salungano Group's share price fell by more than 9% on Monday afternoon after announcing that wholly-owned subsidiary company Wescoal Mining, which comprises the Khanyisa and Elandspruit mining operations, may be liquidated.
The group, previously known as Wescoal Holdings, said it had become aware that a mining contractor of Wescoal Mining had taken legal steps to apply for the provisional winding up of the subsidiary.
While Wescoal Mining filed a notice of opposition to the liquidation application, which would be heard on August 22, Salungano also launched a court application to have Wescoal Mining placed in business rescue.