This follows Wescoal’s announcement, in February this year, that it will acquire the assets, liabilities and employees of the Arnot coal mine in Mpumalanga from Exxaro Coal Mpumalanga, in partnership with Innovators Resources (IR).
However, the transaction was approved subject to several key conditions precedent including the consent by the minister of mineral resources, in terms of section 11 of the Mineral and Petroleum Resources Development Act (MPRDA), to the cession of the mining right by Exxaro in favour of Arnot Operating Company.
Wescoal said that at the time of receiving the ministerial consent, the only outstanding conditions precedent before Arnot to be transferred to Arnot OpCo are the approval by the competition authorities.
Innovators Resources’ shareholders are previous employees of Exxaro Coal Mpumalanga who were retrenched during the shut-down in December 2015.
Their initiative to restart the Arnot mine and unlock its value created the opportunity for Wescoal to become a partner.
“Importantly, this is a significant broad-based empowerment Transaction which will secure employment and provide employees and communities around the mine with equity participation as outlined in Mining Charter III and we are excited that Wescoal Mining is the enabling partner in the relationship with IR.
Wescoal said its strategy was focused on securing additional resources and strategic interests in coal and key logistics infrastructure and it had actively sought out acquisitive value-enhancing opportunities, such as this extensive coal resource base.