Johannesburg - Coal of Africa (CoAL) said yesterday that it had settled its dispute with Rio Tinto and Kwezi Mining over the remaining sum owed by its subsidiary MbeuYashu for the Chapudi coal assets, part of the Greater Soutpansberg Project in Limpopo.
CoAL said it had agreed to increase the minimum monthly payments from $100 000 (R1.4 million) to $650 000, as well as making additional lump sum payments with full and final settlement of the outstanding purchase price by June 15 next year.
The original deal, agreed on in 2012, was for $75m, of which $30m was to be settled by way of deferred consideration payments. CoAL said it had settled approximately $11.2m of the deferred consideration.
David Brown, CoAL’s chief executive, said: “This was the last of the historic liability issues and this agreement provides certainty of outcome, as well as providing CoAL with flexibility.”
BUSINESS REPORT