(Alliance News) - Thungela Resources Ltd said on Tuesday it has completed its acquisition of the Australian-based Ensham coal mine.
The Rosebank-based coal miner reported that all conditions related to the deal had now been fulfilled and that the transaction had become unconditional.
The effective date of completion will be Thursday, allowing Thungela to assume operational control of Ensham from Friday.
Thungela will take over Ensham after the South African coal producer announced the acquisition of a majority stake in Sungela Holdings Pty Ltd in February. Thungela had said then Audley Energy Ltd and Mayfair Corp Group Pty Ltd were its co-investors in Sungela, a newly incorporated company.
The agreement in February saw Sungela buy from Idemitsu Australia Pty Ltd an 85% interest in Ensham, a joint venture between Idemitsu, which held 85%, and LX International, which owned the rest.
Thungela expects Ensham, located in the Bowen Basin in Queensland, Australia, to produce 2.7 million tonnes of thermal coal. The coal mine produced about 3.2 million tonnes of thermal coal in 2022.
The underground mine has a life of mine though to 2039.
Thungela said the Ensham acquisition was a significant step in its strategy to diversify geographically.
On Tuesday, Thungela said the terms of the Ensham acquisition remain unchanged.
The transaction, it said, is structured to enable Sungela to benefit from the economics of Ensham during the period between January 1, 2023 and the date of completion.
The determination of the economic benefit will be finalised over a period of up to three months following completion, Thungela said. The transaction is also subject to customary working capital adjustments upon completion, it added.
Thungela Chief Executive said: "Thungela is proud to have concluded a landmark transaction with Idemitsu, a responsible and reputable owner with well-established processes and systems."
By Artwell Dlamini, Alliance News reporter
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Thungela Resources (TGA)