https://www.miningweekly.com

Buffalo’s future uncertain as it awaits funding proposals for Aviemore adit project

10th August 2018

By: Creamer Media Reporter

     

Font size: - +

Coal producer Buffalo Coal is awaiting the submission of possible final offers from bidders interested in investing in its Aviemore mine, in KwaZulu-Natal.

The mine has 18 months of life-of-mine (LOM) reserves left. To extend the LOM to 15 years, R445-million of additional capital is needed to open up a new adit at the mine.

NorthCott Capital was appointed to embark on a process to obtain the required additional funding and a bidding process commenced early in June.

Indicative offers have been received and bidders have until the end of this month to submit final proposals.

Buffalo has warned that there can be no guarantee that any final offers will be received.

It has also warned that its only other operation, the Magdalena colliery, also in KwaZulu-Natal, will be unable to carry the company’s full operational costs should the Aviemore adit project not proceed.

Meanwhile, Buffalo’s run-of-mine (RoM) production for the second quarter decreased by 20% year-on-year to 288 055 t, as a result of a 39% year-on-year decrease in production at Magdalena.

This was offset, to some extent, by the performance at Aviemore, where production decreased by 1% year-on-year.

Anthracite sales increased by 8% year-on-year in the second quarter, while bituminous coal sales fell by 20% year-on-year.

Buffalo’s revenues for the quarter improved by 34% year-on-year to R195.70-million.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

ZF Aftermarket
ZF Aftermarket

ZF Aftermarket is the after-sales division of the world-renowned German ZF group, a global leader in mobility technology.

VISIT SHOWROOM 
ABB Electrification
ABB Electrification

Electrifying the world in a safe, smart, and sustainable way, ABB Electrification is a global technology leader in electrical distribution and...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

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:0.045 0.935s - 110pq - 2rq
Subscribe Now