South Afrcia’s Wescoal is to acquire 51 per cent of the Pegasus project in Mpumalanga Province, it has been announced.
The project—an undeveloped metallurgical and export quality thermal coal deposit with a resource of approximately 15 million tons—was previously owned by BHP Billiton Energy Coal South Africa. The project is located approximately 10 kilometres from Witbank, next to Exxaro’s Inyanda colliery.
Pegasus is a shallow coal deposit, comprising the number 2 upper, number 2 lower and number 1 coal seams of the Witbank coalfields. The site’s main product will be low-phosphorus coal for sale to the metallurgical industry.
Pegasus is expected to come on stream during 2014, with a mine life of eight to 10 years thereafter.
Andre Boje, CEO of Wescoal Holdings, commented: “The acquisition of 51 per cent of the Pegasus project is in line with Wescoal's stated goals of securing high quality coal resources that can be mined by the opencast method to increase production and sustainability.
“There was intense competition from local and international mining companies to secure the Pegasus project as the reserve is known industry-wide as the last great coal resource available in the Witbank and Middelburg coalfields.”
The deal, worth R102 million, is expected to close before June 2012.
