Black-owned Seriti buys Eskom mines from Anglo
Newly formed Seriti Resources draws hope from due diligence work in its plan to reopen the closed mines
Newly formed Seriti Resources, a 79% black-owned company, would use its R2.3bn purchase of coal mines from Anglo American as a stepping stone towards creating a South African mining champion, Seriti CEO Mike Teke said. Anglo hopes to conclude the sale of three operational coal mines supplying power utility Eskom, as well as four closed mines to Seriti, making it the second-largest supplier to the state-owned company, generating about 25-million tonnes of thermal coal a year. Seriti wanted to see if it could reopen the closed mines, drawing hope from the due diligence work it had done on the assets, Teke said. Seriti would fund the purchase by equity contributions from the four groups behind the company as well as bank debt. The R2.3bn had been set for January 2017 and could change by the time the deal was finalised by the end of the year or early 2018, Teke said. Seriti was in talks with Anglo for the purchase of the New Largo coal mining project to supply Eskom, along with other in...
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