Mining company Seriti to conclude acquisition of South32 coal assets

SOUTH AFRICA – Coal mining company  Seriti Resources, has released a statement indicating that all conditions of its acquisition of South32 SA Coal Holdings Proprietary Limited (SAEC) have been fulfilled and the sale is expected to be completed on 1 June 2021. The new shareholders of 100% of SAEC will be Seriti Resources (90%), and the SAEC Employee and Community Trusts (5% each). Since signing the transaction in November 2019, it has been subject to various conditions precedent that have required, amongst others, the approval of the Competition Tribunal, the…

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Mining company Exxaro Resources to offload thermal coal amid environmental concerns

SOUTH AFRICA – Coal and heavy minerals mining company Exxaro Resources, public utility Eskom’s biggest coal supplier, has become the latest company to offload thermal coal assets as pressure mounts for mining companies to reduce exposure to fossil fuels amid climate change concerns. The Johannesburg Stock Exchange (JSE) listed mining firm announced the sale of its Exxaro Coal Central (ECC) to black-owned and private mining operator Overlooked, without disclosing the value of the transaction. Exxaro said the sale was part of playing a meaningful role in helping black mining operators obtain…

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Mining giant Anglo American spins off coal assets to reduce greenhouse gas emissions

SOUTH AFRICA – British multinational mining company Anglo American has spun off its South African thermal coal assets into Thungela Resources which will have a primary listing on the Johannesburg Stock Exchange and a standard listing on the London Stock Exchange. As part of setting up Thungela into a standalone business, Anglo said it would provide a US$171 million initial cash injection and a further contingent capital support until the end of 2022 in the event of thermal coal prices in the dollar falling below a certain threshold. The demerger comes…

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Pan-African investment company Beryl Group acquires 100% stake in Eyethu Coal

SOUTH AFRICA – Pan-African diversified investment company Beryl Group has acquired Africoal’s stake in Eyethu Coal, effectively making the group the 100% shareholder in Eyethu Coal. Eyethu Coal was established in 2004 and has six operational mines, with expansion plans for several new operations under development. Eyethu produces in excess of four-million tonnes of coal a year, with further capital injections from Beryl Group planned to enhance the assets and increase the life of the mines, and the opening up of a “solid and expansive” coal export business for Beryl…

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Vale mining hires Barclays and Standard Chartered banks to sell coal assets in Mozambique

MOZAMBIQUE – Vale. SA, world’s largest iron ore producer, has hired investment banks Barclays and Standard Chartered to sell its Mozambique metallurgical and thermal coal mine and port project, have told Club of Mozambique, as the Brazilian miner works to become carbon neutral by 2050. Vale joins top miner BHP BHP.AX, BHPB.L and others who are keen to shed coal, burnt to produce electricity, as global investors ditch holdings in polluting fossil fuels. Vale, the world’s second-biggest iron ore miner, this week agreed to buy out its minority partner in…

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Mining firm Vale buys out partner in Mozambique, divests coal assets

MOZAMBIQUE – Global mining company Vale has said it is buying out minority stake partner, Japan’s Mitsui & Co, in a Mozambique coal mine and port project, ahead of selling the loss-making asset as it works to become carbon neutral by 2050. Vale, the world’s second-biggest iron ore miner, said in a statement it planned to divest its loss-making Moatize coal mine and Nacala Corridor rail and port projects in Mozambique, to focus on its core operations. Mitsui also said separately it has agreed to sell its stake in the…

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Standard Bank to continue funding coal mining in South Africa and region

SOUTH AFRICA – Standard Bank says it will continue to fund thermal coal and coal-fired power generation operations under strict conditions since they play an important role in the generation of electricity in the region.   “Energy generation in South Africa and Sub-Saharan Africa in particular, is still more than 80% driven by coal fired power stations, so clearly, in that scenario, we will continue to support the generation of electricity,” said Kenny Fihla, CEO of Standard bank Corporate and Investment Banking at Standard Bank Group. However, Fihla said the bank…

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Coal miner Edenville International enters into agreement with MarTek Global for sales and marketing

TANZANIA – Edenville Energy Plc, the AIM quoted company operating the Rukwa Coal Project in southwest Tanzania, has announced that the Company’s subsidiary Edenville International Limited (EITL) in Tanzania, has entered into a Sales and Marketing Agreement with MarTek Global FZ-LLC, a Dubai-based sister company to Infrastructure and Logistics Tanzania Limited (ILTL), with both having the same principal shareholder. The Sales and Marketing Agreement follows on from the recently announced Coal Mining Agreement (CMA) with ILTL, which provided for a fixed rate mining and processing contract at Rukwa and which…

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