South Africa’s second-largest coal producer Exxaro Resources Ltd said that it plans to sell prospecting rights to properties containing about 200 million metric tons of reserves it doesn’t plan to develop. There’s a very low probability that Exxaro will develop the assets.

Finance Director Wim de Klerk said in a statement said that the sale will allow the Pretoria based company to focus on other projects.

Exxaro called for expressions of interest in the assets today, including Arnot South, Kranspan and Vaalbult in Mpumalanga province, the nation’s biggest coal region. It plans to boost capital spending on coal and mineral sands projects threefold to ZAR 8.2 billion (USD 1.2 billion) this year.

(Sourced from Bloomberg)