South Africa: Seriti assumes management of SAEC assets

Miner Seriti Resources has completed all of the conditions precedent in respect of its acquisition of South32’s South African Coal Holdings (SAEC), with the transaction now closed and Seriti assuming management of these operations from June 1. SAEC has been renamed Seriti Power, and comprises the Khutala, Klipspruit, and Middelburg Mines Services North and South mines, which provide coal to Eskom’s Kendal and Duhva power stations. The mines also provide export coal that is shipped through the Richards Bay Coal Terminal.

As such, Seriti holds a 90% interest in Seriti Power, while an employee trust and community trust each hold a 5% interest.

Seriti CEO Mike Teke says the fulfilling of acquisition conditions is an important milestone for Seriti and for the more than 8 000 employees that Seriti is welcoming into its family. “We are confident of continuing to supply sustainable, reliable and cost-effective coal to Eskom, as we play our role in ‘keeping the lights on’ in South Africa.”

Seriti, through its Seriti Coal subsidiary, also owns the New Vaal, New Denmark and Kriel collieries, which supply coal to Eskom’s Lethabo, Tutuka and Kriel power stations. It is also developing the New Largo mine to supply coal for the Kusile power station.