National Union of Mineworkers FILE PHOTO

Business In The News South Africa

NUM welcomes sale of Anglo’s Eskom-tied coal ops to Seriti

JOHANNESBURG, April 11 – The National Union of Mineworkers (NUM) on Tuesday welcomed the sale of Anglo American plc’s Eskom-tied domestic thermal coal operations to a wholly-owned subsidiary of Seriti Resources, a company majority owned by historically disadvantaged South Africans.

This comes after Anglo American announced on Monday that it had sold its Eskom-tied domestic thermal coal operations in Mpumalanga to Seriti for around R2.3 billion.

The coal operations consist of the New Vaal, New Denmark and Kriel collieries, and four closed collieries. This will result in Seriti becoming the second largest provider of thermal coal to Eskom, supplying almost a quarter of Eskom’s annual coal requirements.

NUM president, Joseph Montisetse, said in a statement that the union was hoping that Seriti would not embark on retrenchment process once they take over the operations.

“We are happy because the deal includes four closed collieries and that will lead to massive job opportunities in communities around those closed coal operations,” Montisetse said.

“Our members and other mineworkers are very concerned and worried about the job losses that are happening in the mining industry in South Africa. The retrenchments are out of control and we hope Seriti Resources will play a major role in job creation in the mining industry.”

Anglo said Seriti was led by a management team with extensive experience of operating and developing large coal mines in South Africa.

Mike Teke, Seriti’s chief executive, said the transaction was a significant step towards the company’s vision of becoming “a black-controlled, broad-based South African mining champion, and a coal player of significant size and scale”.

The transaction is subject to conditions, including regulatory approvals and Eskom’s consent for the transfer of coal supply agreements. It is expected to close by the end of the year, and the final price will take into account cash flows generated between January 1 and the date of completion.

– African News Agency (ANA)

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