Shanduka ups stake in Shanduka Coal
150509Suppliers of construction materials into the building industry are taking strain because of the collapse of the residential housing market. Buildmax, which has been repositioned through two major acquisitions as an opencast coal mining contract and supplier of construction materials.photo Supplied 150509Suppliers of construction materials into the building industry are taking strain because of the collapse of the residential housing market. Buildmax, which has been repositioned through two major acquisitions as an opencast coal mining contract and supplier of construction materials.photo Supplied
Johannesburg - Shanduka Group and Glencore International Plc. have finalised the transaction whereby Shanduka Group has increased its shareholding in Shanduka Coal from 30% to 50.01%.
Glencore retains a 49.99% shareholding in Shanduka Coal post-transaction.
The deal involved the acquisition of shares in exchange for a cash payment by Shanduka Group and the transfer of its 30% shareholding in Kangra Coal to Shanduka Coal.
Shanduka Coal owns 100 per cent of the Graspan Colliery and the Middelburg Townlands Colliery and Extension, located near Middelburg, as well as the Springlake Colliery located near Newcastle, both in SA.
These operating mines have a current aggregate annual production capacity of 6 million tonnes of saleable coal, and supply the export and domestic markets, including Eskom. Shanduka Coal is also developing further coal projects in the Mpumalanga coalfields.
Kangra Coal is owner of the Savmore Colliery in the Ermelo coalfields of SA, with a current annual production capacity of 3 million tonnes of saleable coal.
Phuti Mahanyele, CEO of Shanduka Group, said the transaction goes some way in delivering on the company's strategy of increasing its shareholding in specific businesses and increasing its operational involvement.
“We are excited about the future of the Shanduka Coal business, and we are committed to growing it further with our partner Glencore,” Mahanyele said.
Shanduka Group is an African black-owned and managed investment holding company established in 2001. The investment portfolio comprises resources, energy financial services, property, industrial and food and beverages.
The group partners with organisations in which it can play a meaningful role in maximising its growth and profitability. - I-Net Bridge