• Inside Labour

    Government's farming policies have had a damaging effect, says Terry Bell.

  • Hunter feeling the heat

    The killer of Cecil the lion is now the one getting hunted - by outraged Americans.

  • Making media behave

    Is patriotic reporting another name for whitewashing corruption, asks Leopold Scholtz.

Loading...
See More

Shanduka buys Glencore stake in coal unit

Dec 14 2011 11:40
Reuters
Johannesburg - South Africa's Shanduka Group said on Wednesday it has 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% from 30%.

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," CEO Phuti Malabie said in a statement.

The group will pay R370m and use some of its other coal assets, including a 30% stake in Kangra Coal, to fund the deal.

The group also plans to spend R200m 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 about 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 approval by the competition authority and the department of mineral resources.

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
1 comment
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're Talking About...

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Introducing tablets in schools is:

Previous results · Suggest a vote

Loading...