SILICA and coal miner Petra Mining (Petmin) said yesterday that it would proceed with the development of a R114m anthracite mine near Mtubatuba and Richards Bay in KwaZulu-Natal.
The mine, Somkhele, forms part of the Springlake Holdings acquisition approved by Petmin’s shareholders at a meeting this week.
Petmin, which was a cash shell until 2003, first acquired silica producer SamQuarz with three black partners for R65m with financing from the New Africa Mining Fund.
The fund was set up by government and the private sector to promote small-scale mining in SA.
Petmin’s latest acquisition, Springlake, which it bought for R108m from the fund and minority shareholders, was financed by the issue of 175,8-million Petmin shares at 60c each.
With the latest deal, Petmin has consolidated its black economic empowerment shareholding.
A consortium, including Dark Capital Investments, Lebone Resources, Popcru Investments and Umsobomvu Coal, holds 40% of the company.
Together with its existing black investors, this brings Petmin’s black shareholding to 52%.
The mining charter requires mining companies to have a 15% black equity representation by 2009 and 26% by 2014.
The Somkhele Project — which will be financed through shares to be issued to the New Africa Mining Fund, bank debt and internal resources — will produce an initial 40000 run-of-mine tons a month of high-quality anthracite in the second quarter of 2007, ramping up to full production of 950000 tons a year by 2010.
© 2009 Petmin Limited