Tuesday, 23 Aug 2011
South Africa's sixth largest coal producer Optimum Coal said that it had bought two prospecting rights from BHP Billiton Energy Coal South Africa in a move to boost its portfolio.
Optimum said it would buy from BECSA the Remhoogte prospecting rights, which have an inferred resource of around 306.5 million tonnes.
The ZAR 235 million (USD 32.6 million) acquisitions will be funded through the company's own cash resources and re financed group debt facilities.
Mr Mike Teke CEO said the acquisition gives Optimum an attractive growth opportunity. he said that "At this stage it is envisaged that Remhoogte will principally be a replacement for Optimum Colliery's export saleable production in the medium to long term, although market conditions and an improvement in export logistics could result in the development of the project being expedited.”
The company said a planned Remhoogte mine is expected to produce 2.5 million tonnes of export coal per year and an estimated 400,000 tonnes of middlings product well suitable to supply power utility Eskom's nearby Camden and Majuba power stations.
(sourced Thomson Reuters)
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