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Community Gains 16% Of Mpumalanga Coal Mine

Coal News - Published on Wed, 12 Jun 2019

Image Source: Mining Journal
City Press reported that a deal to give 16% shareholding of an anthracite coal mine to rural communities in Mpumalanga is about to be sealed. The Mpumalanga Economic Growth Agency facilitated the shareholding deal at Nkomati Anthracite Mine, which is situated in Mpumalanga within the Nkomazi Local Municipality near Malalane. Mega has a 33% stake in the mine and the majority shareholder is Unicorn Capital Partners. Nkomati Anthracite Mine struggled over a number of years under Sentula Mining and had a staff complement of only 20 people in 2015.

The mine was also under pressure from communities that disrupted its operations to demand jobs and business opportunities. When Unicorn Capital Partners came on board, the company and Mega secured a ZAR 150 million loan from the Industrial Development Corporation, which enabled the mine to expand. Unicorn has provided roughly ZAR 230 million through a shareholder loan to develop the mine’s open-pit and underground operations. The mine has a lifespan of 25 years, with 8.7 million tonnes of reserves on 400 hectares of land.

Mr Themba Camane, Mega acting chief executive said the mine employed 500 people. He said that “The mine was not performing well about three years ago and Mega could not put equity. We then approached the IDC for funding.” He said the one condition of the IDC loan was that there must be community consultation and involvement.

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Posted By : Rabi Wangkhem on Wed, 12 Jun 2019
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