Sale Deal
Mining Weekly|Mining Weekly 21 April 2017

R2.3bn Anglo coal sale to Seriti may hit Eskom ownership snag.

Martin Creamer
 Sale Deal

A new aspirant South African mining champion last week announced its intention to acquire Anglo American’s Eskom-tied domestic thermal coal operations in South Africa, which would position the majority blackowned start-up as the potential second-largest provider of coal to the State electricity utility.

Seriti Resources, the company Anglo named as the proposed buyer of three Eskom-tied coal mines and four closed coal assets, is a new 79% black-owned company, which easily ticks the transformation boxes demanded by both Eskom and the Department of Mineral Resources (DMR).

The Eskom-tied mines being sold by Anglo for R2.3-billion ($164-million) are the New Vaal, New Denmark and Kriel collieries, and also part of the deal are four closed collieries, which Seriti sees as having reopening potential.

Anglo has signed a binding sale and purchase agreement with Seriti in a deal that has been two years in the making.

However, Eskom spokesperson Khulu Phasiwe said the question of the ownership of the mines remained a “sticking point” and that Eskom would be seeking an urgent meeting with Anglo to understand how the issue could be resolved.

Eskom interim CEO Matshela Koko said recently that Eskom had received an asset register from Anglo confirming that the State-owned electricity utility owned assets at the mines in question, but that these assets were not reflected on its balance sheet. The utility had also conducted an audit of all its mining assets, but had not yet disclosed the value or nature of the assets.

“However, we definitely believe we have a right to have a say over what becomes of those assets,” Phasiwe said in a telephonic interview with Mining Weekly.

This story is from the Mining Weekly 21 April 2017 edition of Mining Weekly.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the Mining Weekly 21 April 2017 edition of Mining Weekly.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM MINING WEEKLYView All
Supply Cliff?
Mining Weekly

Supply Cliff?

Commodities supply shortfall looming following years of underinvestment

time-read
3 mins  |
Mining Weekly 17 March 2017
Strikes Threaten Coal Sector
Mining Weekly

Strikes Threaten Coal Sector

If an agreement cannot be reached on the future structure and form of wage nego­tiations in the coal sector, unions have threatened to strike, says Solidarity mining industry deputy general secretary Connie Prinsloo.

time-read
3 mins  |
Mining Weekly 17 March 2017
Continued Focus On Downstream Development
Mining Weekly

Continued Focus On Downstream Development

Continued Focus On Downstream Development

time-read
2 mins  |
December 08, 2017
Unrelenting Scourge
Mining Weekly

Unrelenting Scourge

Mining fatalities in South Africa rise for first time in decade

time-read
2 mins  |
December 15, 2017
Plea For Open Discussion
Mining Weekly

Plea For Open Discussion

Diamonds body calls for ‘productive dialogue’ on Kimberley Process reform

time-read
3 mins  |
December 15, 2017
Deep Potential
Mining Weekly

Deep Potential

Stillwater deal seen positioning Sibanye as globally competitive mining champion.

time-read
5 mins  |
January 20 - 26, 2017
Explosive Advantage
Mining Weekly

Explosive Advantage

Explosives reloading system helping Gold One to reduce mining costs.

time-read
2 mins  |
January 20 - 26, 2017
Critical Juncture
Mining Weekly

Critical Juncture

South Africa’s mining sector at a crossroads, collaborative effort required.

time-read
7 mins  |
January 20 - 26, 2017
Consulting Engineering's Viability Proportional to Mining's Growth
Mining Weekly

Consulting Engineering's Viability Proportional to Mining's Growth

The consulting engineer-ing industry’s sustain-ability and growth are largely dependent on and proportional to the mining industry’s sustainability and growth respectively, says industry body Consulting Engineers South Africa (Cesa).

time-read
3 mins  |
Mining Weekly 28 April 2017
Greater Emphasis On Ensuring Sustainability
Mining Weekly

Greater Emphasis On Ensuring Sustainability

Engineering expertise can be used to generate socio-economic gains for mining companies, particularly in jurisdictions that are dependent on the finite business of mineral extraction, states global engineering and infrastructure advisory firm Aurecon, an adviser to the African mining sector.

time-read
2 mins  |
Mining Weekly 28 April 2017