JOHANNESBURG (miningweekly.com) – TSX- and JSE-listed Forbes & Manhattan Coal on Wednesday announced that it had extended the closing date for the acquisition of a portion of junior coal miner Ikwezi Mining’s mining right for Alleen No 2, located adjacent to Forbes’ current Magdalena opencast operations, in KwaZulu-Natal, to June 30 as the parties were still awaiting written consent from Mineral Resources Minister Susan Shabangu.
Her consent to the acquisition was required in terms of Section 102 of the Mineral and Petroleum Resources Development Act.
In terms of the acquisition, which was initially expected to close on April 30, Forbes Coal subsidiary Zinoju Coal would acquire the Alleen No 2 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.