Exxaro sells Exxaro Coal Central to Overlooked Colliery
Exxaro Coal CentralExxaro

Exxaro sells Exxaro Coal Central to Overlooked Colliery

South Africa’s black empowered coal mining company Exxaro has sold three non core coal mines Dorstfontein, Forzando and Tumelo, collectively known as

South Africa’s black empowered coal mining company Exxaro has sold three non core coal mines Dorstfontein, Forzando and Tumelo, collectively known as Exxaro Coal Central, to Overlooked Colliery, a 100% black-owned coal mining company. Included in the purchase consideration is cash in the rehabilitation trust which Exxaro will retain. In addition, Overlooked will assume all the rehabilitation liabilities. Exxaro will retain all coal export entitlement through the Richards Bay Coal Terminal. The transaction, which is expected to close in the second half of 2021, is awaiting approval from the Competition Commission and the department of mineral resources and Energy.

Dorstfontein Complex

Market: Export

Product: Thermal Coal

Production: 2.5 million tonnes

Life of Mine: 15 years

Forzando Complex

Market: Export

Product: Thermal Coal

Production: 2.0 million tonnes

Life of Mine: 11+ years

Overlooked is a privately held and 100% black-owned mining entity which operates the Overlooked Colliery as well as the Weltevreden and Halfgewonnen Collieries which it recently acquired from Sudor Coal. Overlooked currently produces 2.4-million tonnes of coal a year and plans to double that to 4.8-million tonnes a year by 2022.

Exxaro, the largest supplier of coal to Eskom, has embarked on a strategy that will see it slowly diversify away from coal and into greener alternative energy technologies. The disposal of ECC and Exxaro’s Leeuwpan mine in Mpumalanga has been on the cards for some time, after the assets were identified as noncore to the company’s future strategic objective.

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