NUM welcomes Seriti's purchase of Anglo coal mines | Fin24
 
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NUM welcomes Seriti's purchase of Anglo coal mines

Apr 11 2017 17:42

Cape Town – The National Union of Mineworkers (NUM) hopes the sale of Anglo American’s Eskom-tied coal operations to majority black-owned Seriti Resources will help create jobs in the ailing mining industry. 

On Monday, Anglo American announced that it intends to sell its New Denmark, New Vaal and Kriel coal mines for R2.3bn to Seriti.

READ: Anglo to sell Eskom-tied coal operations to black-owned company  

In a statement issued on Tuesday, NUM said it was “happy” about the deal, as it includes four closed collieries that will lead to “massive job opportunities” in communities where mining operations take place.
 
“As the NUM, we hope Seriti Resources once they take over the operations will not embark on a retrenchment process,” said Joseph Montisetse, deputy president of the union. “We hope Seriti Resources will play a major role in job creation in the mining industry.”
 
Eskom, however, said it would want a meeting with Anglo American about the sale, MiningMx reported. 

Khulu Phasiwe, Eskom spokesperson, told MiningMx that the ownership issue of the mines has not been resolved, but that the power utility does not “otherwise” have a problem with the transaction.

He added that Anglo had been in contact with Eskom about the process and that it would be a “final meeting” to conclude the transaction.

READ: Eskom at loggerheads with coal mine companies  

The transaction between Anglo and Seriti when concluded will make Seriti, which is led by Chamber of Mines president Mike Teke, the second largest supplier to Eskom, supplying almost a quarter of Eskom’s current annual coal requirements.

Anglo deputy chairperson Norman Mbazima said the sale to Seriti supports transformation objectives for the mining industry and South Africa that will ensure a sustainable, reliable and cost efficient supply of coal to Eskom.

Read Fin24's top stories trending on Twitter:

anglo american  |  eskom  |  coal mining  |  sale
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