Thugela Resources Announces Acquisition Of Controlling Shareholding In The Ensham Coal Mine And Related Assets
Thugela Resources Announces Acquisition Of Controlling Shareholding In The Ensham Coal Mine And Related Assets. In line with its commitment to deliver superior returns to shareholders, and delivering on its purpose to responsibly create value together for a shared future, Thungela is pleased to announce that it has entered into agreements, as set out below, which envisageThungela obtaining a controlling interest in the Ensham coal mine.
Thungela has, subject to regulatory approvals, entered into an agreement with Audley Energy Limited and Mayfair Corporations Group Pty Ltd in terms of which inter alia Thungela, through its wholly owned subsidiary, Thungela Resources Australia Pty Ltd (“Thungela Australia”), will acquire a majority shareholding interest in Sungela Holdings Pty Ltd (a newly incorporated private company with limited liability, registered in accordance with the lawsof Australia) (“Sungela Holdings”) and will loan fund a portion of the Co-investors equity contributions.
Sungela Holdings will, in turn, through its wholly owned subsidiary, Sungela Pty Ltd(“Sungela”), acquire an 85% interest in the Ensham Joint Venture from Idemitsu Australia Pty Ltd and its subsidiary, Bligh Coal Limited as well as Idemitsu’s85% shareholding in Ensham Coal Sales Pty Ltd; its 100% shareholding in Ensham Resources Pty Ltd (the operator of the Ensham coal mine) and its 85% shareholding in Nogoa Pastoral Pty Ltd and Nogoa Pastoral Joint Venture (collectively, the”Ensham Business”). Sungela will also conclude royalty and transitional services agreements with Idemitsu. The Transaction delivers on Thungela’s strategy, by providing geographic diversification through a highly cash generative thermal coal asset, with long-life potential, at an attractive valuation, and puts Thungela in a position to capitalise on the current strong Newcastle coal price environment.
The Transaction delivers on Thungela’s strategy to pursue geographic diversification, and is in a commodity it understands well and in which it can leverage its core skills. The transaction also satisfies the company’s investment evaluation criteria of responsible stewardship, upgrading its asset portfolio and maximising shareholder value. The Transaction is astep towards de-risking the company’s underlying business and bolstering its resilience, recognising the ongoing infrastructure challenges in South Africa.
The Transaction provides Thungela with an attractive entry point into Australia, a leading mining geography with a successful track record of thermal and metallurgical coal production, and to amining basin with well-established port and rail facilities. This diversification also decreases the company’s exposure to a single geography.
