South African coal exporter Thungela Resources has officially agreed with its black economic empowerment partner Inyosi Coal.
The partnership is all about buying a 27% interest in Anglo American Inyosi Coal (AAIC) which is under Inyosi’s ownership in exchange for shares in Thungela.
This has come to the attention of BusinessTech Africa that 100% of AAIC will be owned by Thungela as the thermal coal exporter owns various assets in Mpumalanga such as Zibulo colliery.
Mining Weekly reports that the transaction will mark a new chapter in the relationship between them and Inyosi.
“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,” said Thungela CEO July Ndlovu.
“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.”
Moreover, Thungela anticipates the deal will enable the company to benefit from the full economics of the Zibulo operation and the Elders project.
Thungela also owns interests in and mines or produces thermal coal predominantly from seven mining operations in Mpumalanga, namely Goedehoop, Greenside, Isibonelo, Khwezela, AAIC, and Mafube Coal Mining.
Through AAIC, Thungela also holds a 50% interest in Phola, which owns and runs the Phola coal processing plant, and a 23% indirect interest in Richards Bay Coal Terminal, in KwaZulu-Natal.
The Elders project is expected to be developed at an estimated cost of R1.9-billion and it is aimed at extending Thungela’s footprint in the Goedehoop region in the next 10 years.
Meanwhile, the company Thungela is expecting to produce up to 4.2 million tonnes of coal per year of run-of-mine coal at Elders, and production is anticipated to start running in the next three years.
