JOHANNESBURG Dec 14 (Reuters) – South Africa’s
Shanduka Group said on Wednesday it had gained majority control
of a coal venture it operates with global commodity trader
Glencore to have a bigger say in the running of its
coal assets.
Shanduka, an unlisted investment holding company chaired by
politician-turned-businessman Cyril Ramaphosa, increased its
stake in Shanduka Coal to 50.01 percent from 30 percent.
Shanduka and Glencore will share operational control of the
joint venture.
“The decision to increase our shareholding in Shanduka Coal
is in line with our strategy of expanding our investment in the
coal sector and becoming more operationally involved,” Chief
Executive Phuti Malabie said in a statement.
The group will pay 370 million rand ($44.7 million) and use
some of its other coal assets, including a 30 percent stake in
Kangra Coal, to fund the deal.
The group also plans to spend 200 million rand to develop
future coal projects over the next five years.
Shanduka Coal’s operating mines include the Graspan,
Middelburg Townlands and Springlake collieries in South Africa.
The coal joint venture currently produces around 7 million
tonnes of saleable coal per year, which is sold domestically to
power utility Eskom and exported to international markets.
“Despite current global uncertainties, the outlook for coal
remains robust. Our continued investment in the South African
mining industry is indicative of the value we see in its
prospects,” Malabie said.
The deal is still subject to approvals by the competition
authority and the department of mineral resources.
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