Wescoal buys remainder of Moabsvelden coal project

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Wescoal buys remainder of Moabsvelden coal project

Published Date: 2019-05-31 | Source: Stephen Gunnion | Author: Stephen Gunnion

Wescoal buys remainder of Moabsvelden coal project

The group says development activities at Moabsvelden are about to start, with the first coal expected by the end of the year.

Wescoal has snapped up the remaining shares in the company which owns the Moabsvelden Project, giving it 100% of the large coal resource. After agreeing to buy an additional 18.2% stake in Neosho last week, it said the last minority shareholder had agreed to part with the remaining 7.8% interest in the company for R10.5 million.

Moabsvelden is close to the Vanggatfontein mine that Wescoal acquired when it bought Keaton Energy. It's a 47.8 million ton resources, which Wescoal believes has the potential to be developed into a 1.5 million to 2 million ton a year operation. It said there was capacity for the coal produced at the mine to be processed at facilities to Vanggatfontein or to be sold directly. It is already in talks with potential customers for the coal, including Eskom.

Its shares rose 4.6% to R1.38 yesterday.





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