Bloomberg reported that Glencore International Plc sold a stake in South Africa’s Shanduka Coal to partner Shanduka Group for about ZAR 700 million (USD 85 million), giving a majority holding in the venture to a company led by former politician Cyril Ramaphosa.

Ms Phuti Malabie CEO of Johannesburg based Shanduka Group said that the sale by the world’s biggest publicly traded commodities company increases Shanduka Group’s stake to 50.01% from 30%. She added that the deal is subject to antitrust and other approvals.

Ms Phuti Malabie added that “We always had the intention to increase our equity in coal. There are good growth prospects in terms of the internal market and exports citing India and China as growing overseas buyers.

Shanduka, with investments in other minerals, a chain of McDonald’s Corp franchises, energy and property, is increasing its holdings in its main industries including coal. Domestic use of the fuel is set to rise as state-owned power utility Eskom Holdings SOC Ltd. builds new coal-fired plants to meet a national electricity shortage.

(Sourced from Bloomberg)