SNR eyes sale of South African coal mine
A strategic review of the Elitheni coal mine in South Africa is being conducted by Strategic Natural Resources (SNR). The company is looking to offload the mine, if it deems an offer is in the best interest of SNR shareholders, Elitheni shareholders and creditors and its BEE Partners.
SNR indirectly owns 74% of Elitheni Coal Ltd. The company’s board said it would look for offers that “recognize the value” of the South African coal mine.
According to Elitheni Coal Ltd, “Elitheni is a Xhosa word that means "the place of new beginnings, like the dawn of the new day". This is precisely what was intended with Elitheni, to resurrect the once buoyant coal mining industry in the Eastern Cape where SA's first coal mines operated from 1860 to 1915.”
SNR began shipping coal from the Elitheni mine since September 2013: with a maiden cargo of 38 000 t.
The Elitheni mine is located in an area of extensive infrastructure. The mine has access to two railway lines leading to the port of East London.
There is also a further rail line which runs through the Elitheni mine property to the deepwater industrial port of Coega, which has capacity to load large cape sized vessels.
SNR is now looking to secure the sale of the coal mine, hoping that its access to infrastructure, as well as the mine’s 266 million t of coal reserves, entice potential investors.
Written by Sam Dodson
Read the article online at: https://www.worldcoal.com/coal/01072014/elitheni_coal_mine_could_be_sold_by_snr_1041/
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