https://www.miningweekly.com

Wescoal sells Intibane collieries

28th June 2018

By: Simone Liedtke

Creamer Media Social Media Editor & Senior Writer

     

Font size: - +

Coal miner Wescoal has entered into sale agreements with Tokata Resources and Banjosign to dispose of its Intibane 1 and Intibane 2 collieries, in Mpumalanga.

The disposal will become effective on or about July 1.

The Intibane Complex comprises the Intibane 1 and Intibane 2 opencast collieries.

With the remaining coal reserve at the Intibane Complex being less than the annual production rate, the disposal is in line with Wescoal’s strategy of realising value for shareholders and building a scalable, sustainable business, the company said on Thursday.

The total consideration for the disposal is about R57-million in cash, which is payable by August 31.

The consideration, which will be used to reduce the short-term borrowings of the group and to fund strategic growth options, is to be settled through a R39-million payment by Tokata for the mining operations and assets of Intibane Complex, and a R18-million payment by Banjosign for the surface rights of the Intibane Complex.

The value of the net assets that are the subject of the disposal is R39-million, Wescoal said, and the profits attributable to the net assets that are the subject of the disposal, is R37-million for the year ended March 31.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION