Local diversified midtier miner Metorex has sold its Wakefield coal operation to black economic-empowered (BEE) miner Shanduka Coal for R425-million, Metorex announced on Friday.

Shanduka Coal is part of the bigger Shanduka group led by politician-turned-businessperson Cyril Ramaphosa.

The transaction was effective from July 1, conditional on governmental and regulatory approvals, including Competition Commission approval and the finalisation of a definitive sale shares agreement.

Metorex had a 74% stake in Wakefield, which comprises four collieries in the Witbank/Middelburg region. Grailton, which had a 26% holding, would also sell its holding to Shanduka.

The disposal was in accordance with Metorex’s strategy of securing and operating long-life, high-quality mining and resource assets.

It said that, while Wakefield had become a meaningful contributor to the company’s earnings, its limited-life reserves were not in accordance with these asset-mix aspirations.

Metorex stated that the proceeds from the transaction would be used to enhance long-life high-margin mining and exploration targets, as well as contribute to the financing of the accelerated Ruashi phase two capital-development programme.

Ruashi is Metorex’s copper/cobalt project situated in the south of the Democratic Republic of Congo.

Metorex was speeding up the development of its copper mine in the DRC to benefit from metal-price gains.

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