https://www.engineeringnews.co.za

Wescoal secures R200m funding for Elandspruit colliery

31st October 2014

By: Creamer Media Reporter

  

Font size: - +

JOHANNESBURG (miningweekly.com) – Coal junior Wescoal has secured R200-million in funding from Investec Bank to be used primarily for the commissioning of its Elandspruit colliery.

The financing facility includes a R180-million five-year term loan and a R20-million five-year working capital facility.

Wescoal noted that R70-million would be used to retire the existing Investec term facility, while R110-million would go towards the commissioning of the Elandspruit colliery, including the acquisition of the Muhanga plant, mine operational infrastructure, surface rights and production start-up costs.

The R20-million working capital facility would be used for general purposes.

“This structure will provide funding for capex and development of our flagship Elandspruit operation. Furthermore, we are delighted in the confidence Investec has in our company. The decision to opt for debt as opposed to equity is so that shareholding is not diluted.

“The ability to move forward with secured funding in place is significant for Wescoal. Elandspruit colliery increases our life of mine beyond 15 years and, coupled with the Muhanga coal processing plant, as well as our established trading business, Wescoal is a well-rounded coal operation,” commented Wescoal CEO Andre Boje.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Environmental Impact Management Services
Environmental Impact Management Services

EIMS is an independent specialised environmental consulting firm offering the full spectrum of environmental management services across all sectors...

VISIT SHOWROOM 
The Beneficiation Academy
The Beneficiation Academy

The Beneficiation Academy is a certified training institution that follows all compliance legislation and is accredited with various Sector...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.058 1.273s - 140pq - 2rq
Subscribe Now