Exxaro looks to sell NCC

EXXARO is calling for expressions of interest from parties interested in acquiring its New Clydesdale Colliery in Mpumalanga.

Staff Reporter

The diversified resources group announced Wednesday it had received a number of unsolicited approaches to acquire the thermal coal colliery.

“As NCC is a relatively short life-of-mine and lower margin asset, the group will embark on a process of testing whether potential third-party buyers can generate greater value from this unique asset,” Exxaro said in a statement.

The company said this could result in the disposal of NCC “to a suitably qualified operator”

NCC is located 140km east of Johannesburg near eMalahleni in Mpumalanga.

It employs almost 400 people and produces 1.4 million tonnes per annum of A-grade and D-grade thermal coal, primarily for the export market.

Last year the colliery 717,000t of A-grade steam coal, most of which was exported.

Coal is mined using both open-pit and underground methods and the operation has a reserves base of 14Mt.

Exxaro has appointed FirstRand Bank Limited, acting through RMB Corporate Finance, as transaction adviser.

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