South Africa's Wescoal said that its mining unit, Wescoal Mining had acquired 60% of a newly formed company to transfer new order prospecting rights, boosting its shares by 4.55%.

Wescoal Mining paid an initial share capital of ZAR 60 for the stake in the new company, meant to transfer the prospecting rights granted by the Department of Minerals and Energy from Proudafrique and other individual owners.

Wescoal which is involved in coal washing and coal trading and sources its coal from mines and other suppliers said that the acquisition is in line with its aim of expanding into the fast growing coal mining industry and to take advantage of high inland and export prices.

Wescoal said that "By becoming a primary producer of coal product, Wescoal can enter new markets such as export, Eskom and the cement industry.”

Proudafrique a black owned company has purchased the remaining 40% of the new company.