Wescoal Holdings is to sell its Blesboklaagte washing plant in Witbank for ZAR 15 million to Slater Coal Marketing, a subsidiary of Forbes Coal which listed on in Johannesburg last month.

The purchase price will be settled through an initiation cash settlement of ZAR 6 million and the balance of R9m payable in three equal monthly payments of ZAR 3 million each.

Mr Andre Bojé CEO of Wescoal Holdings said that “The inflow of cash into the business will be used to for opportunities we are investigating and the transaction is earnings enhancing to Wescoal to the value of 22,2 cents per share.”

He said that “The coal washing operations at Blesboklaagte were unprofitable during previous financial years and a decision was made to close the plant on March 31st 2011. Since then Wescoal has begun a comprehensive restructuring program to restore operations and strengthen its financial position.”

(Sourced from www.miningmx.com)