BHP finalises sale of SA coal mine

JOHANNESBURG – Mining group BHP Billiton has finalised the sale of its Koornfontein coal mine in South Africa to a consortium of black investors for 430 million rand, it said yesterday.

BHP Billiton, the world’s largest diversified mining company, first announced the sale in July 2006 and said yesterday in a statement the deal closed on Sunday. The sale of a majority stake to a consortium of black investors also included 1,5 million tonnes of export capacity at the Richards Bay Coal Terminal.The consortium – led by Siyanda Resources Ltd and AKA Resources Holdings Ltd – holds 50 per cent plus one share in the mine while Coronation Capital and Investec Bank Ltd owns 50 per cent minus one share.The deal is part of an effort by South African businesses to involve more of the country’s black majority in the mainstream economy after they were excluded during apartheid.BHP Billiton said it would provide 70 million rand in vendor finance to help the consortium buy the mine, located 200 km east of Johannesburg, which produced three million tonnes of export-quality steam coal in the 12 months to June 2006.Nampa-ReutersThe sale of a majority stake to a consortium of black investors also included 1,5 million tonnes of export capacity at the Richards Bay Coal Terminal.The consortium – led by Siyanda Resources Ltd and AKA Resources Holdings Ltd – holds 50 per cent plus one share in the mine while Coronation Capital and Investec Bank Ltd owns 50 per cent minus one share.The deal is part of an effort by South African businesses to involve more of the country’s black majority in the mainstream economy after they were excluded during apartheid.BHP Billiton said it would provide 70 million rand in vendor finance to help the consortium buy the mine, located 200 km east of Johannesburg, which produced three million tonnes of export-quality steam coal in the 12 months to June 2006.Nampa-Reuters