Industry intelligence
Wescoal exits JV at Khanyisa
agreed to wind up the JV between them in
accordance with the terms of their agreement.
Wescoal will retain title to the Khanyisa
Mine, including the Khanyisa Triangle
section’s coal reserve and life of mine of four
years. According to Dr Humphrey Mathe,
interim CEO at Wescoal, this agreement
enables Wescoal to exploit the coal reserve
exclusively within its sales and marketing
strategy.
Wescoal will sell its 35% share in Aztolinx
to Aztolinx for R100/share and pay R185-
million over a nine-month period to
Aztolinx for its Khanyisa Triangle interest.
In exchange, Aztolinx will relinquish its right
to purchase from Wescoal all coal extracted
from the Khanyisa Triangle.
“This transaction is small in quantum
but meaningful for all parties. In departing
from this joint venture, Wescoal effectively
gains full commercial value of the operation
and clears up the line of sight to market
the coal. The combined group is now better
positioned to meet increased demand, both
from Eskom as well as other domestic and
export customers,” says Mathe.
The South African-based coal miner, trader,
and supplier Wescoal has announced that
its joint venture ( JV) with Uju Resources,
Mwelase Mining, and Aztolinx, has terminated.
The end of the JV means that Wescoal
Mining will now have a direct marketing
channel to sell the coal it currently mines at
Khanyisa. Wescoal and Uju were shareholders
holding 35% and 65%, respectively, in
Aztolinx. The latter was established to exploit
the Khanyisa Triangle reserve.
Following a dispute which arose in
2018 and which led to litigation, all parties
Wescoal’s joint venture with Uju Resources, Mwelase Mining, and Aztolinx, has come to an end.
www.miningmirror.co.za
APRIL 2019 MINING MIRROR [5]