Rio Tinto's offices in Perth, Australia. File picture: David Gray

 

Johannesburg - London- and New York-listed mining company Rio Tinto has agreed to sell its 74 percent stake in Zululand Anthracite Colliery (ZAC) to Menar Holding for an undisclosed amount of money.

Rio Tinto, which has a long-standing relationship with South Africa, will continue to mine in the country through Richards Bay Minerals (RBM).

Read: Miners trying to look beyond grey skies

ZAC is an underground mine in Zululand which produces premium quality anthracite for domestic and international customers.

“We have put the interests of the mine and that of its 1 300 employees and contractors employed by ZAC first and decided that selling the stake was in the best interest for all the parties involved. The community around the area will also benefit in the long run, because Menar has a proven track record in mining in the country and they have committed themselves in making a significant investment in the business to ensure a long lasting sustainability,” said RBM managing director Thabo Mothao in Cape Town.

BUSINESS REPORT