Sydney-listed, Universal Coal, said the South African government had approved the transfer of mining rights to the North Block Complex (NBC), thermal coal operations that it is buying from Exxaro Resources.
The transfer of mining rights on the properties – Glisa and Eerstelingsfontein which are situated in the country’s Mpumalanga province – were “… a milestone in Universal securing the NBC,” said Tony Weber, CEO of Universal Coal in a statement.
“As we have stated previously, NBC will add materially to Universal’s growing production profile and will give the company greater exposure to high margin export markets in the long term,” he said. Closure of the transaction was therefore a step closer, he added.
“Coal markets and pricing are currently favourable and Universal continues to benefit from strong sector tailwinds,” said Weber.