The acquisition is closely aligned with Exxaro’s long-term growth strategy and will provide it with a large-scale acquisition that will complement its coal portfolio, the company said.
“The acquisition increases the scale of Exxaro’s coal portfolio and further entrenches Exxaro as one of the premier coal producers in South Africa,” it added.
“Exxaro sees its investment in coal assets as a core part of its diversified mining portfolio and believes that it will be able to leverage its extensive experience in coal mining to unlock additional value from the existing Total Coal operations and the Eloff greenfields project.”
TCSA is the fifth largest coal producer in South Africa and has a majority interest in two main operating complexes, Dorstfontein and Forzando, in the Witbank coal basin in South Africa’s Mpumalanga Province.
TCSA recorded combined sales of about 4.5 million tonnes per annum in the year ended December 31, 2013.
The majority of TCSA’s production is export coal which is shipped via RBCT to international markets, mainly India and China. TCSA also sells its production into the South African domestic market.
TCSA has a 74% direct shareholding in the Dorstfontein and Forzando mines.
The remaining 26% of the Dorstfontein and Forzando mines are owned by Mmakau Mining Proprietary Ltd.
TCSA also owns a 49% interest in the Tumelo coal mine, with the remaining shareholding held by Mmakau, which is currently not in operation, and holds a 51% interest in the potential Eloff greenfields project, an undeveloped domestic thermal coal resource in Mpumalanga Province.
