CoAL sells its shares in Mooiplaats colliery
Coal of Africa Limited (CoAL) and its subsidiaries (which includes GVM Metals Administration and Ferret) has announced their intention to sell their shares in Mooiplaats thermal coal colliery to a group of investors, MCH, for a price of R179.9 million.
According to David Brown (pictured), CEO of CoAL, this sale is the final step in the company's balance sheet restructuring strategy, and will set CoAL on course to become a self-sufficient, mid-tier coal mining company.
CoAL has said that MCH's structure is compliant with the proposed requirements of the currently suspended third version of the Mining Charter. MHC comprises Don Turvey, former CEO of Continental Coal, young black professionals, future Mooiplaats employees, and To The Point Growth Specialists, as well as communities.
The transaction will be financed by The Last Mile Fund, established by Patrice Motsepe's Africa Rainbow Capital, former Harmony CEO Bernard Swanepoel, Sipho Nkosi, president of the Chamber of Mines, and Clinton Halsey from Extract Group. It will be structured in such a way that R15 million will be paid to Ferret for their 26 percent interest in the Mooiplaats Colliery, while R52 million will be paid to the CoAL Group for the balance of equity shareholding in Mooiplaats, as well as the claims against Mooiplaats and Langcare.