23rd Dec 2024 15:33
(Alliance News) - Thungela Resources Ltd said on Monday it has agreed to buy the remaining 15% of Australian-based Ensham coal mine from Bowen Investment (Australia) Pty Ltd from AUD48 million, or ZAR553.6 million.
The Rosebank-based coal miner assumed operational control of Ensham in September after acquring 85% interest in the coal mine located in the Bowen Basin in Queensland. Thungela will now buy the remaining 15% shareholding in Ensham.
The latest transaction is subject to regulatory approvals.
Thungela expects Ensham to contribute about 35% of its profit before net finance income and tax for the financial year ending December 31.
It said its geographic diversification strategy into Australia continues to enhance its production profile.
The transaction enables the coal producer to utilise its technical and marketing capabilities to create further value for the group.
"In line with our strategic priorities, this opens up new markets in Japan and Malaysia, diversifying our customer base and providing exposure to the Newcastle Benchmark coal price," it said.
Thungela said the Ensham mine continues to benefit from its operational expertise as it extracts coal using mechanised underground bord and pillar mining methods, similar to those used in its South African operations.
Shares in Thungela were flat at 575.50 pence Monday afternoon in London. They were down 0.1% to ZAR133.28 in Johannesburg.
Kibo is also suspended from the Johannesburg Stock Exchange.
By Artwell Dlamini, Alliance News reporter
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