Miranda buys anthracite mine from Sentula for R150m
JOHANNESBURG (miningweekly.com) – Exploration company Miranda has become a coal producer with its purchase of 60% of Nkomati anthracite mine from Sentula for R150-million.
The transaction, made together with Mochiba Investments, positions the JSE-listed company for turnaround, following two years of restructuring and resolving litigation.
Miranda CEO John Wallington said Miranda had shed its overhang of liabilities and was on the lookout for opportunities like those the Nkomati acquisition, which offered low capital investment and early cash flow.
“This is an exciting opportunity to create value for shareholders,” the former Anglo American Coal CEO said, adding that the acquisition presented low operational risk, minimal capital requirement and a short lead-time to production, which will enable early cash flow generation.
There is also substantial blue sky potential in the form of an extensive exploration area within the 11 000 ha lease area.
Nkomati has a proven opencast resource of five-million tons run-of-mine (RoM) coal and a 46-million-ton indicated resource of low phosphorous, low sulphur anthracite.
Its rail siding facility and beneficiation plant can process 60 000 t RoM a month.
First production is envisaged in June 2014.
Community and environmental issues had been resolved, Wallington assured.
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