All conditions related to Seriti Resources’ acquisition of South32 SA Coal Holdings Proprietary Ltd. (SAEC) have been fulfilled and the sale is expected to be completed on June 1. The new shareholders of 100% of SAEC will be Seriti Resources (90%) and the SAEC Employee and Community Trusts (5% each).
“The closure of this transaction is a significant milestone for Serti and our employee and community trusts,” Seriti CEO Mike Teke said. “It will secure a sustainable, reliable and cost-effective coal supply solution to Eskom, and at the same time bring opportunities for further synergies and optimization within Seriti. This is a further demonstration of our commitment to South Africa and to the industry.”
South32 will provide facility of up to $50 million to fund the restructure of loss-making mining areas. South32 will provide $200 million over 10 years to fund SAEC’s historic environmental rehabilitation and closure liabilities.
Eskom agreed to amend the existing terms and conditions stipulated in the Duhva Coal Supply Agreement, adjusting the price to R550 ($38.56) per ton, effective June 1. The agreement will run until December 31, 2024.