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Mercuria And South African Girms Place Bids For South32's SAEC Coal Mines

Coal News - Published on Mon, 24 Jun 2019

Image Source: South32
Reuters citing, four sources familiar with the matter, reported that Seriti Resources and a consortium backed by global energy trader Mercuria are among up to six groups to have submitted final bids for the South African coal assets of South32. A consortium backed by South African miner Exxaro Resources dropped out of the race due to competition issues as the firm is already a major coal producer and supplier to state-owned power utility Eskom. While some international mining companies, including Anglo American, have reduced exposure to coal on environmental grounds, traders have not been deterred - sparking a race for quality assets needed for power generation.

South Africa’s government is also encouraging black-owned businesses to participate more in the economy.

Mr Phuthuma Nhleko, Phembani Group, founded by MTN Group chairman, has also refrained from submitting a binding offer for South32’s South African Energy Coal after conducting due diligence on the assets. The Mercuria-backed coal-mining consortium, Sibambene Coal, was launched in March and is also partly owned by investment company Menar and some black-owned companies and trusts.

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Posted By : Sanju Moirangthem on Mon, 24 Jun 2019
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