Diversified resources group Exxaro Resources Limited (“Exxaro”) reports today that the sale and purchase agreement concluded with a consortium of Burgh Group Holdings Proprietary Limited (“Burgh”) and Lurco Group Proprietary Limited (“Lurco”) on 23 November 2015 to acquire Inyanda Colliery (mainly the mining right, plant, Blackhill private rail siding and associated liabilities) situated in the eMalahleni district in Mpumalanga has become unconditional and was concluded on 3October 2016.
Burgh and Lurco will continue using Inyanda Colliery for coal beneficiation and foresees the beneficiation of more than 25 million tonnes of coal for the local and international export market over the next five years which will add significantly to the country’s coal beneficiation infrastructure.
“We are delighted to deliver Inyanda Colliery to its new owners” says Mxolisi Mgojo, the Chief Executive Officer of Exxaro. “Inyanda Colliery was one of Exxaro’s flagship mines and will continue to generate immense value for the new shareholders”.
“Quinton van der Burgh, the Chief Executive Officer stated that “the acquisition of Inyanda’s assets is a critical building block of our organisation” while Ellington Nxumalo, Chief Executive Officer of Lurco Group added that they were honoured to purchase the great assets of Inyanda from Exxaro”.
Burgh and Lurco will continue with good mining practices, safe operations and compliance with all environmental obligations.
All parties thanked the Department of Minerals and Resources for its approval of transfer of Inyanda’s mining right to the new owners of the colliery and the Competition Commission for an unconditional approval of the transaction.
- Exxaro is one of the largest South African-based diversified resources groups, with interests in the coal, mineral sands, iron ore and energy markets. For more information, visit website: www.exxaro.com
- Burgh Group Holdings is an investment holding company with interests in numerous companies, focusing mainly on mining and the industrial sectors. Burgh Group Holdings core interests lie in coal mining, marketing and mining equipment. Currently, the company has interests in several operational mines with more mines scheduled to become operational in the near future. Their growth in the mining field is evident and the group has achieved remarkable successes such as acquiring operational mines and obtaining several prospecting licenses. Combined with its highly driven mergers and acquisitions department, the company has also entered into new joint ventures with other mining houses. The company also runs numerous drilling rigs an on-going exploration programs. The company also has opencast contracts for various other mines, mining coal for these companies. Burgh Group Holdings has recently secured long term export offtake contracts for coal reserves owned within the group, and continues to grow notwithstanding the difficult international (and local) coal markets. The company continues to focus on strategic assets with a view to expanding its South African footprint following directly in line with the company’s commitment to South Africa and the future of the mining sector in this country.
- Website: www.burghgroupholdings.com
About Lurco Group:
- Lurco Group is an emerging South African resources business with the vision to be a leader in the international mining sector with a focus on exploration, beneficiation and trading. Lurco’s mission is to prosper in the mining value chain from pit to local point of use or export. Lurco supplies coal and chrome products to local and international power utilities and smelters. The company beneficiates raw minerals and distribute refined end-products, Lurco prides itself on building sustainable strategic partnerships with investors and communities we operate in. With the aim to be a zero harm business, Lurco preserves the environment and the interests of those touched by its operations. Eight years ago Ellington Nxumalo and Aubrey Chauke founded Lurco with the sincere objective to build a commercially successful business that will add value beyond Lurco’s own bottom-line. The entrepreneurial founders pride themselves on their deep functional mining knowledge gained from own experience and actively lead the business and its operations.
- Website: www.lurco.co.za
Executive Head: Strategy and Stakeholder Engagement
Tel: +27 307 7393
Cell: +27 83 417 6375