ASX-listed Universal Coal subsidiary, North Block Complex, has been granted approval by the Department of Mineral Resources in terms of Section 11 of the Mineral and Petroleum Resources Development Act for the ownership transfer of Glisa and Eerstelingsfontein mining rights.
Universal Coal and its North Block Complex (NBC) subsidiary were granted ministerial approval for the acquisition of the North Block Complex on 3 August.
In March 2018, NBC entered into a sale and purchase agreement with Exxaro Coal Mpumalanga and Exxaro Coal for the acquisition of assets that comprise the North Block Complex.
The acquisition is progressing well and has already received Competition Commission approval.
The following suspensive conditions are still outstanding:
The granting of the Section 11 ownership rights transfer is another step in propelling the company to achieving their committed strategy of producing 10 Mtpa of saleable product to market as the North Block Complex, which historically produced 2.7 Mtpa, will increase Universal Coal’s saleable tons to 7.5 Mtpa.
“The Section 11 approval brings us a step closer to completing the acquisition and the North Block Complex 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,” says Universal CoalCEO Tony Weber.Read more