Page 7 - AfrElec Week 48 2022

COAL
AfrElec AfrElec

SA’s Thungela increases

interest in Zibulo colliery

SOUTH AFRICA SOUTH African thermal coal exporter, Thun- anticipated to be earnings accretive, the group
gela Resources, has reached an agreement with will benefit from the full economics of the Zib-
its black economic empowerment (BEE) partner, ulo operation and the Elders production replace-
Inyosi Coal, to acquire the 27% interest in Anglo ment project, the statement says.
American Inyosi Coal (AAIC) currently owned Thungela owns interests in and produces
by Inyosi in exchange for shares in Thungela. thermal coal primarily from seven mining
Following the acquisition, Thungela will own operations in Mpumalanga: Goedehoop,
100% of AAIC, whose assets include the Zib- Greenside, Isibonelo, Khwezela, AAIC, Mafube
ulo colliery, in Mpumalanga, and the recently Coal Mining and Butsanani Energy, which
approved Elders production replacement pro- owns the independently operated Rietvlei col-
ject, the LSE- and JSE-listed group said in a state- liery, writes Mining Weekly.
ment on November 24. Through AAIC, Thungela also holds a 50%
“The transaction marks a new chapter in interest in Phola, which owns and operates the
our relationship with Inyosi, as we unlock value Phola coal processing plant, and a 23% indirect
and liquidity for Inyosi as they transition from interest in Richards Bay Coal Terminal.
asset partners to investors in Thungela,” said July The Elders project, to be developed at an
Ndlovu, chief executive officer at Thungela. estimated cost of ZAR1.9bn ($109mn), is
“The transaction also underscores Thunge- aimed at extending Thungela’s footprint in the
la’s commitment to sound capital discipline as Goedehoop region by about ten years, Mining
we invest in a highly cash-enerative asset that we Weekly reports.
know exceptionally well – our own operations Thungela is expected to produce up to 4.2mn
and project opportunities such as Elders.” tonnes per year (tpy) of run-of-mine coal at
As a result of the transaction, which is Elders, with production to start in 2025. ™

Week 48 30•November•2022 www. NEWSBASE .com P7