The company said in a statement on Monday that it had also bought Ermelo Mines’s infrastructure, railway loop and discard dump as part of the deal.
The firm said that it assumed all historical liabilities related to the assets as part of the agreed purchase price.
“We have worked for some years to put this important transaction to bed, and would like to thank South32 for their commitment to Scinta and perseverance on the transaction,” Zungu, the chairman of Zungu Investments, which holds a stake in Scinta, said.
The Davel right is estimated to contain more than 400 million tons of export- and Eskom-grade coal, with an anticipated yield in excess of 80 percent.
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“Once in production, the Davel Mine will benefit from the existing rail and handling infrastructure at Ermelo Mines, which will allow Scinta to produce at a significantly reduced all-in cost of production,” Scinta said.
Scinta was expecting to sustain the life of the mine for over 50 years, during which it planned to produce at least 5 million tons of saleable product annually.