Exxaro Resources Ltd has concluded the sale and purchase agreement with a consortium of Burgh Group Holdings Proprietary Ltd (Burgh) and Lurco Group Proprietary Ltd (Lurco) on 23 November 2015 for the consortium to acquire Inyanda Colliery (mainly the mining right, plant, Blackhill private rail siding and associated liabilities), a coal mine situated in the eMalahleni district in Mpumalanga which has become unconditional and was concluded on 3 October 2016.
Burgh and Lurco will continue using Inyanda Colliery for coal beneficiation and foresees the beneficiation of more than 25 million t of coal for the local and international export market over the next five years, which will add significantly to the country’s coal beneficiation infrastructure.
“We are delighted to deliver Inyanda Colliery to its new owners” said Mxolisi Mgojo, CEO of Exxaro. “Inyanda Colliery was one of Exxaro’s flagship mines and will continue to generate immense value for the new shareholders”.
Quinton van der Burgh, the Chief Executive Officer of Burgh Group Holdings stated that “the acquisition of Inyanda’s assets is a critical building block of our organisation” while Ellington Nxumalo, Chief Executive Officer of Lurco Group added that they were honoured to purchase the great assets of Inyanda from Exxaro.
Burgh and Lurco will continue with good mining practices, safe operations and compliance with all environmental obligations. All parties thanked the Department of Minerals and Resources for its approval of transfer of Inyanda’s mining right to the new owners of the colliery and the Competition Commission for an unconditional approval of the transaction.