JOHANNESBURG (miningweekly.com) – Diversified resources group Exxaro is calling for expressions of interest from parties to acquire its New Clydesdale Colliery (NCC) operation, near eMalahleni, in Mpumalanga.
The company announced on Wednesday that it had started a process that could result in the disposal of NCC.
“As NCC is a relatively short life-of-mine and lower margin asset, the group will embark on a process of testing whether potential third-party buyers can generate greater value from this unique asset,” Exxaro said in a statement.
FirstRand Bank Limited, acting through RMB Corporate Finance, had been appointed by Exxaro as transaction adviser. Pieter Nienaber of RMB told Mining Weekly Online that Exxaro’s decision had been prompted by it recently having received a number of unsolicited approaches from parties wanting to acquire NCC.
Exxaro indicated that the process, which would start in early May, would allow it to focus on its core portfolio and deliver its growth prospects.
Nienaber added that, should a suitable buyer for NCC be identified, the conclusion of a transaction could be expected around mid-2014.
In 2012, NCC produced 717 000 t of A-grade steam coal, most of which was exported.