Share

Exxaro to buy stake in Total, community wants share

Johannesburg - Exxaro Resources’ [JSE:EXX] deal to buy Total SA’s South African coal unit for $472m must include a community stake to be granted state approval, minister of mineral resources Ngoako Ramatlodi said.

Communities must benefit from such an acquisition as required by the law, Ramatlodi said in an interview on Thursday in Cape Town. The companies have been told that it is essential for them to include such a stake, according to the minister. “I’ve said so.”

The price of coal at the Richard’s Bay terminal, the country's main export hub for the fuel, has declined 25% since Exxaro announced the deal on July 28. The company in February said it was awaiting ministerial approval in terms of section 11 of the nation’s mining law.

Nonkosi Dyan, a spokesperson for Total’s South Africa unit, didn’t immediately return a call and e-mail seeking comment.

Exxaro declined to comment on when the deal could expire if approval is not granted, citing confidentiality in regards to the transaction, Mzila Mthenjane, executive head of strategy for the company, said in an e-mailed reply to questions June 4.

He didn’t respond to an e-mail on Tuesday about the community stake.


We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.89
+0.3%
Rand - Pound
23.87
+0.1%
Rand - Euro
20.39
+0.2%
Rand - Aus dollar
12.32
+0.1%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders