Thungela to gain full ownership of Zibulo colliery and the Elders project
South African thermal coal exporter Thungela Resources has reached an agreement with its black economic empowerment partner Inyosi Coal to acquire the 27% interest in Anglo American Inyosi Coal (AAIC) currently owned by Inyosi in exchange for shares in Thungela.
Upon completion of the acquisition, Thungela will own 100% of AAIC, whose assets include the Zibulo colliery, in Mpumalanga, and the recently approved Elders production replacement project.
“The transaction marks a new chapter in our relationship with Inyosi, as we unlock value and liquidity for Inyosi as they transition from asset partners to investors in Thungela.
"The transaction also underscores Thungela’s commitment to sound capital discipline as we invest in a highly cash-generative asset that we know exceptionally well – our own operations and project opportunities such as Elders,” Thungela CEO July Ndlovu says.
Thungela expects the transaction to be earnings accretive and that it will enable the company to benefit from the full economics of the Zibulo operation and the Elders project.
Thungela owns interests in and produces thermal coal predominantly from seven mining operations in Mpumalanga, namely Goedehoop, Greenside, Isibonelo, Khwezela, AAIC, Mafube Coal Mining – operating the Mafube colliery – and Butsanani Energy, which owns the independently operated Rietvlei colliery.
Thungela, through AAIC, also holds a 50% interest in Phola, which owns and operates the Phola coal processing plant, and a 23% indirect interest in Richards Bay Coal Terminal.
The Elders project, to be developed at an estimated cost of R1.9-billion, is aimed at extending Thungela's footprint in the Goedehoop region by about ten years. Thungela is expecting to produce up to 4.2-million tonnes a year of run-of-mine coal at Elders, with production to start in 2025.
Comments
The
functionality
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
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?
Receive 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)
➕
Recieve 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
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation