Africa Coal Partners, a separate entity set up and managed by Duet Group, announced its acquisition of a 45.18% stake in Mbuyelo Coal Pty. Ltd. from Ichor Coal N.V. The agreed purchase price was set at 95 million euros ($106 million) with the transaction expected to close in the first quarter of 2020, once regulatory requirements have been completed.

Mbuyelo is a South African coal producer supplying the national power utility Eskom. It operates three open-pit mines with a minimum production of 600,000 metric tons per month (mtpm), thus averaging 7.2 million to 8 million mtpy.

CEO and Co-founder of Duet Group Henry Gabay said, “We are very excited by the opportunities offered by the coal industry in South Africa. South Africa is not yet in a position to switch completely into green energy, hence coal will remain a key component of South Africa’s energy portfolio for the foreseeable future. Reliable power production remains at the heart of Africa’s industrialization and its ability to lift its citizens out of poverty.”

Commenting on the transaction, Rirhandzu Siweya, CEO of Mbuyelo, said, “I welcome the arrival of an African-focused investor that will help us grow and seize new opportunities in a very interesting environment for local coal players.”