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Coal|Energy|Mining|PROJECT|Resources|Operations
Coal|Energy|Mining|PROJECT|Resources|Operations
coal|energy|mining|project|resources|operations

Thungela to gain full ownership of Zibulo colliery and the Elders project

Thungela CEO July Ndlovu

Thungela CEO July Ndlovu

24th November 2022

By: Chanel de Bruyn

Creamer Media Senior Deputy Editor Online

     

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South African thermal coal exporter Thungela Resources has reached an agreement with its black economic empowerment partner Inyosi Coal to acquire the 27% interest in Anglo American Inyosi Coal (AAIC) currently owned by Inyosi in exchange for shares in Thungela.

Upon completion of the acquisition, Thungela will own 100% of AAIC, whose assets include the Zibulo colliery, in Mpumalanga, and the recently approved Elders production replacement project.

“The transaction marks a new chapter in our relationship with Inyosi, as we unlock value and liquidity for Inyosi as they transition from asset partners to investors in Thungela.

"The transaction also underscores Thungela’s commitment to sound capital discipline as we invest in a highly cash-generative asset that we know exceptionally well – our own operations and project opportunities such as Elders,” Thungela CEO July Ndlovu says.

Thungela expects the transaction to be earnings accretive and that it will enable the company to benefit from the full economics of the Zibulo operation and the Elders project.

Thungela owns interests in and produces thermal coal predominantly from seven mining operations in Mpumalanga, namely Goedehoop, Greenside, Isibonelo, Khwezela, AAIC, Mafube Coal Mining – operating the Mafube colliery – and Butsanani Energy, which owns the independently operated Rietvlei colliery.

Thungela, through AAIC, also holds a 50% interest in Phola, which owns and operates the Phola coal processing plant, and a 23% indirect interest in Richards Bay Coal Terminal.

The Elders project, to be developed at an estimated cost of R1.9-billion, is aimed at extending Thungela's footprint in the Goedehoop region by about ten years. Thungela is expecting to produce up to 4.2-million tonnes a year of run-of-mine coal at Elders, with production to start in 2025.

Edited by Creamer Media Reporter

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