Industry intelligence
Kangra’s underground mine and opencast operations in Saul Mkhizeville near Piet Retief, Mpumalanga,
produces two million tonnes of coal per annum.
converted into a full mining operation with a
processing plant on site, in Bronkhorstspruit,
Gauteng.
Menar is also a controlling shareholder
in Zululand Anthracite Colliery, which was
purchased from Rio Tinto in 2016 and turned
into a profitable business within two years.
According to Vuslat Bayoglu, MD at Menar,
South Africa is a good investment destination.
“Investors are always looking for host countries
that can process transactions — both simple
and complicated ones — with reasonable
speed. It’s a competitive advantage we must
not take for granted,” says Bayoglu.
The South African Competition Commission
and the Department of Mineral Resources
(DMR) have approved Canyon Coal’s
USD40-million purchase of Kangra Coal’s
operation in Saul Mkhizeville, near Piet Retief
in Mpumalanga.
Canyon bought Kangra from Madrid-listed
energy firm Gas Natural Fenosa (which held
70%) and South African company Izimbiwa
Coal Investments (which owned 30%).
Kangra’s coal assets are in Mpumalanga and
KwaZulu-Natal.
In December last year, the DMR gave
consent to the transfer of mineral rights
from Gas Natural Fenosa to Canyon Coal.
The Competition Commission had granted
approval of the transaction on 27 November
2018. The purchase agreement was signed
on 25 June 2018.
Kangra has an underground mine and
opencast operations in Saul Mkhizeville.
It produces two million tonnes of coal
per annum. It also has a 2.3% interest in
Richards Bay Coal Terminal, which allows
it to export about 1.6 million tonnes per
annum. Kangra employs about 1 282
workers, including contractors.
The conclusion of the deal has added to
the growing portfolio of coal assets under
the control of Menar, the mining investment
company that also has an interest in Canyon.
In November, Canyon hosted a ceremony to
officially open Khanye, the latest project to be
Canyon’s purchase
approved
Canyon Coal’s purchase of the Kangra coal mine (in picture) has been approved.
www.miningmirror.co.za
MARCH 2019 MINING MIRROR [7]