Vitol, Burgh to buy stake in SA's largest coal terminal
Rotterdam-based Vitol SA and Johannesburg-based Burgh Group Holdings have agreed to buy a stake in Africa’s largest coal terminal, Optimum Coal Terminal (OCT), from a mining company owned in part by the Gupta family. According to reports, Vitol and Burgh will acquire the terminal, which has a 7.6% stake in Richards Bay Coal Terminal, SA’s leading coal terminal with an annual capacity of 91 million tonnes, from Tegeta Exploration and Resources. Quinton van der Burgh (pictured), CEO of Burgh Group, said:
"This is a major step forward for the Burgh Group. It will enable us to invest confidently in expanding our business and developing new and existing projects. We look forward to working with our partners, customers and stakeholders in this exciting phase of the company's development."
Burgh Group currently produces some 500,000 tons of coal a month, and expects to more than double this output by mid-2017.
The deal remains subject to relevant regulatory approvals and other conditions. The monetary value of the purchase has not yet been disclosed.