Seriti announces completion of the acquisition of ESKOM-tied domestic thermal coal mines from Anglo American
Johannesburg, 1 March 2018: Seriti is pleased to announce the completion of the purchase of New Vaal, New Denmark and Kriel mines from Anglo American, as well as various mine life-extension projects and closed mines. Signing of the transaction was announced in April 2017, at a purchase price of R2.3 billion.
The three mines supply approximately 24Mtpa of thermal coal to Eskom’s Lethabo, Tutuka and Kriel power stations which collectively account for almost a quarter of South Africa’s current power supply.
Mike Teke, CEO of Seriti, said: “We are very proud to have concluded this defining transaction with Anglo American. Seriti is committed to building a new South African mining champion and to providing Eskom with cost-effective, long-term coal supply solutions”.
Dr Anna Mokgokong, chairperson of Seriti, added: “As a responsible corporate citizen, Seriti aims to have a significant socio-economic impact on mining communities and will insist on responsible environmental management”.
The first priority of the Seriti leadership team is to engage with operational staff and other stakeholders to achieve a seamless ownership transition.
Around 3,000 former Anglo American employees, including on-mine management and, indirectly, more than 3,000 contractors will now form part of the Seriti team.
Seriti is an 84% black-owned mining company chaired by Dr Anna Mokgokong who will be leading an experienced board and management team. 90% of Seriti shareholding is equally held between Masimong, Thebe Investment Corporation, Zungu Investments Company and Community Investment Holdings. The remaining 10% is held by employee and community trusts.
Seriti has funded the acquisition through a combination of shareholder equity and acquisition finance raised from the Standard Bank of South Africa Limited.
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