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Forbes moves to acquire adjacent Magdalena right for R8m

Forbes moves to acquire adjacent Magdalena right for R8m

Photo by Duane Daws

21st January 2014

By: Natalie Greve

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – Dual-listed Forbes & Manhattan Coal has entered into an agreement with junior coal miner Ikwezi Mining for the acquisition of a portion of its mining right on the property known as Alleen No 2, located adjacent to Forbes’ current Magdalena opencast operations, in KwaZulu Natal.

Zinoju Coal, a subsidiary of the South Africa-focused coal producer, would acquire the property for R8-million; an amount based on the estimated run-of-mine (RoM) to be extracted from the mining right area.

Should the actual RoM exceed the agreed-upon production threshold, Ikwezi would be entitled to receive a top-up payment equivalent to R10/t extracted, which exceeded the production threshold. 

The agreement remained subject to written consent from Mineral Resources Minister Susan Shabangu.

Edited by Tracy Hancock
Creamer Media Contributing Editor

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