South32 cleared to restart SA coal exports
Diversified miner receives nod to resume operations, albeit at a reduced rate
Diversified miner South32 has received permission to restart production at its SA coal export operations, though at a reduced rate.
The group’s coal operations are considered essential, but its export operations had been put into care and maintenance at the start of SA’s lockdown on March 27.
South32 is seeking to sell its SA’s coal assets, saying in November it had reached a deal with Mike Teke’s Seriti Resources.
In terms of the deal Seriti will make an upfront payment of R100m, while South32 will receive 49% of the free cash flow from the assets, capped at a maximum of R1.5bn annually. This will run from the completion date of the deal until March 2024.
South32 said on Monday the transaction remains on track for completion in the six months to end-December.
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