The reserves, which reportedly sold for R70 million (US$10.9 million), encompass the Vaalkrantz anthracite reserve which has a mine life of 15 years and is expected to produce 32,000 tons a month.
The reserve also covers the Braakfontein bituminous coal reserve which holds promise for open cut and underground operations.
The potential of the other reserves, notably in the Vryheid, Utrecht and Newcastle areas, are currently being assessed.
LME is expected to start mining and development towards the end of the year.
“The sale of our KwaZulu-Natal reserves to LME is a significant step for both the coal industry and the mining sector as a whole,” Anglo Coal chairman Tony Redman said.
LME is 80% owned by JPI Leeuw and Associates and LME management hold a 10% stake. Anglo American’s business development and empowerment unit Zimele holds the remaining 10%. LME will benefit from Anglo’s technical services division, engineering firm Hatch Africa while the financing of the venture will be overseen by Zimele and PriceWaterhouseCoopers.
