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Universal eyes new coal buy in SA

Universal eyes new coal buy in SA

Photo by Bloomberg

26th November 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Southern Africa-focused Universal Coal on Tuesday alerted shareholders to the fact that it had made a final binding offer for a new coal asset in South Africa.

The offer followed a competitive tender process, the company said.

The name of the preferred bidder was expected by the end of this year, and the company said that it would release details of the proposed transaction if it was nominated the preferred bidder.

Universal is currently developing its flagship Kangala coal mine, in South Africa, with a view to start production by February.

The Kangala mine would be Universal’s first coal mine, producing 2.1-million tonnes a year of thermal coal, with two-million tonnes a year already allocated to South Africa’s State electricity producer, Eskom.

Edited by Creamer Media Reporter

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