Universal Coal agrees to acquire Exxaro's coal mine in South Africa
Australia-listed firm Universal Coal has inked an agreement with major coal miner Exxaro Resources to acquire the latter's New Clydesdale colliery (NCC) in South Africa. The financial terms of the acquisition deal were not disclosed, according to Creamer Media's Mining Weekly.
Under the terms of the said deal, the Australian miner will purchase all the assets and assume some of NCC's liabilities. The said mine is located near Universal's Roodekop deposit, the report detailed.
According to Universal chief Tony Weber, the transaction marked a significant step in becoming a multi-mine coal producer. He also said the deal expedited the process of mainstreaming the company's Roodekop mine, the report stated.
The NCC has been among the oldest mine sites in the country. The colliery has operated irregularly since 1949, the report added.
Exxaro said of the deal: "NCC has been generating a negative-margin and the life of the mine has shortened beyond the profile that suits Exxaro's investment profile. However, under the new ownership of Universal Coal, further opportunities can be extracted through exploiting synergies with its contiguous operations."