Australia-based mining company BHP Billiton announced that it has reached closure on the sale of its Koornfontein coal mine, together with 1.5 million tons per annum of Richards Bay Coal Terminal entitlement, both of which are in South Africa, to an entity controlled by a black economic empowerment (BEE) consortium.
The BEE consortium, which holds 50% plus one share in the new entity, is led by Siyanda Resources (Pty) Limited and AKA Resources Holdings (Pty) Limited, and includes various broad based groups as well as a Koornfontein employee trust. Coronation Capital Limited and Investec Bank Limited will together hold 50% less one share in the new entity.
The fulfillment of certain regulatory requirements including the conversion and transfer of Koornfontein's mining rights in terms of the Minerals and Petroleum Resources Development Act of 2002 and the approval of the South African Competition Commission has enabled the conclusion of the sale.