XCSA completes Mpumalanga assets sale

Imbawula has acquired, as a going concern, the Spitzkop and Tselentis opencast, the underground mining operations and all supporting infrastructure. In addition, Imbawula Mining has acquired prospecting and mining rights in the area to support the long term operation of the business.

All affected XCSA employees will be transferred to Imbawula and the represented unions have been consulted, the company said. "Imbawula is gaining a highly competent team of employees and the company has an ongoing commitment to working responsibly and safely," Xstrata COO Murray Houston said, adding that from XCSA's perspective, the disposal of these assets allows it to focus on its core portfolio of large production complexes, including the ongoing development of existing and future resource base.

Imbawula directors Pius Mokgokong and Yacoob Mansoor said that the acquisition is "a compelling and natural fit," supplementing the company's resources "to support its core business, of supplying coal to Eskom." The acquisition also offers exposure to the export markets, away from Eskom. According to Steelguru.com, Xstrata Coal will purchase export coal from Imbawula over a ten year period at a market related price. It has also agreed to assist Imbawula during a transition period to ensure a smooth handover of the business. XCSA will also continue its HIV/Aids community work in the region, including the completion of a new community clinic in Breyten.

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