Wescoal won’t be farming on Vanggatfontein


Wescoal won’t be farming on Vanggatfontein

Published Date: 2019-06-12 | Source: Stephen Gunnion | Author: Stephen Gunnion

Wescoal won’t be farming on Vanggatfontein

Acquiring the surface rights to the farm where its Vanggatfontein colliery is situated will allow it to expand the operation.

Wescoal has bought the farm where its Vanggatfontein coal mine is situated in a deal that will give it the surface rights as well as the mining rights to the property. Vanggatfontein is the main asset of Keaton Energy, which was bought by Wescoal in July 2017.

The company is acquiring Farm Vanggatfontein 251 for R63.3 million from the Johan Louis Venter Testamentere Trust and Andries Schoeman Brakfontein Boerdery in two transactions so it can expand the mining operations of its colliery.

The farm, 14km from Delmas in Mpumalanga, includes grazing, drylands and 107 hectares of irrigation. The structures include barns and storage for implements. It doesn't intend to continue the farming operations but will utilise the properties to expand its mining operations. The deal also gives it access to additional mining faces for the Vanggatfontein colliery, helping to improve the consistency of the quality of coal it mines there.

It will fund the acquisition using cash and existing debt facilities.

Its shares fell 2.3% to R1.26 yesterday after declining by 3.7% on Monday.

Similar Stories