Forbes Coal has entered into an agreement with Ikwezi Mining for the acquisition of a portion of the Ikwezi mining right over the property known as Alleen No. 2. The mining right is located north of Dundee in the Kwa-Zulu Natal province in South Africa and lies adjacent to Forbes Coal’s Magdalena opencast operations.
Forbes Coal holds a majority interest in two operating mines in South Africa. Zinoju Coal Ltd, a subsidiary of Forbes Coal, holds a 100% interest in the Magdalena bituminous coal mine and the Aviemore anthracite coal mine.
The company is looking to expand its opencast operations and will acquire Alleen No. 2 for a purchase price of C$ 0.8 million. The price is based on the estimated ROM that can be extracted from the mining right area. If the ROM actually exceeds the agreed upon production threshold, Ikwezi is entitles to receive a top-up payment equivalent to C$ 1/t extracted which exceeds the production threshold.
Under terms of section 102 of the Mineral and Petroleum Resources Development Act, the South African minister of mineral resources must supply written consent for the agreement between Forbes and Ikwezi to go ahead. Approval must be received before 20th April 2014.
Edited from various sources by Sam Dodson
Read the article online at: https://www.worldcoal.com/coal/21012014/forbes_coal_targets_south_african_coalfields_428/