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Lurco Group Approaches High Court over Sale of Koornfontein Coal Mine to Black Royalty Minerals

Coal News - Published on Tue, 12 Nov 2019

Image Source: moneyweb.co.za
Moneyweb reported that the sale of Koornfontein coal mine has hit a legal obstacle with losing bidder Lurco Group is asking the High Court to interdict the business rescue practitioners from selling the mine to another bidder, Black Royalty Minerals. Lurco said that the business rescue practitioners unlawfully changed its business rescue plan in October when they demanded that the full purchase price for the Koornfontein assets be placed in a South African bank account within five days. Lurco was unable to meet this deadline as funds had to be shifted from an overseas account, for which regulatory approval was required. According to Lurco COO Aubrey Chauke affidavit “Having missed the deadline, BRM was anointed as the preferred bidder. The BRM bid, at about ZAR 300 million, is substantially lower than Lurco’s.”

Lurco submitted two bids for the mine, both for ZAR 500 million. The initial bid was backed by funding from Central Energy Fund subsidiary African Exploration Mining and Finance Corporation. CEF is owned by the state. Lurco also submitted an alternative bid, independent of AEMFC, with funding from Ocean Partners Holdings.

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Posted By : Rabi Wangkhem on Tue, 12 Nov 2019
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