Black company in huge coal deal - Seriti second biggest provider of coal to Eskom
A consortium led by prominent entrepreneurs Sandile Zungu, Dr Anna Mokgokong and Mike Teke has concluded a deal to buy one of the country's biggest coal mining operations.
Seriti Resources chair Mokgokong told Sowetan yesterday that the consortium which bought Anglo Coal for R2.3-billion, is owned by four firms which are equal partners. The transaction will make Seriti the second biggest provider of thermal coal to Eskom.
Teke, the former chief executive of Optimum Coal and current chairman of the Chamber of Mines, is the company chief executive. The Seriti shareholders, include Masimong Group, Thebe Investment Corporation, Zungu Investments and Community Investment Holdings Projects. Zungu, a close ally of President Jacob Zuma, is one of the founders of the Black Business Council.
Seriti's domestic thermal coal operations consist of the New Vaal, New Denmark and Kriel collieries and four closed operations. Mokgokong said the company's 2400 employees will receive 5% of the company shares and another 5% will be held by communities where the mines operate.
She said Seriti planned to review all the operations and could kick start the four inactive collieries.
"Anglo is a big company. For them something this small could be big for us," she said.
Mokgokong said the deal was funded by Standard Bank and the shareholders were required to put down surety.
"Under the terms of the transaction, the consideration payable will be adjusted for cash flows generated by the operations between January 1 2017 and the date on which the transaction is completed in order to determine the final payment to be made by Seriti upon completion," said Mokgokong.
Last year the three mines produced 36-million tonnes of coal.
Mokgokong said once authorities like the Department of Mineral Resources and the Competition Commission had approved the transaction, Seriti would seek to renegotiate the terms and conditions of its Eskom contracts. She added that the aim was to make Seriti a major player in the coal industry across the continent. - email@example.com
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