Black-owned South African Coal Mining Holdings (SACMH) has raised R79-million in a rights offering, which it would put towards a major infrastructure upgrade, it said on Tuesday.
The company stated that this represented just under 80% of the rights shares it offered at R4 a share.
The offer closed on August 8, when SACMH ended trading on the JSE at R3,50 a share.The company said that it would use the money for its infrastructure upgrade programme designed to expand production capacity, improve the cost effectiveness of SACMH by substantially reducing the level of toll treating and the use of other sidings in the region.
It would also go towards improving unit revenue by limiting the fraction of export quality coal sold into the domestic market or into the export market through third-party Richards Bay Coal Terminal allocation.
SACMH had earlier this year said that it would raise R400-million, with a 12-month payback of the first phase of streamlined infrastructural provision.
Some R220-million had been earmarked for the enhancement of the New Voorslag siding and loadout, as well as the electrification of a section of the Ermelo-to-Carolina railway line.
Royal Bafokeng Holdings owns 65% of SACMH.