JOHANNESBURG - Thungela Resources Limited, a South African-based mining company, announced Monday that it has entered into an agreement to acquire the remaining 15% interest in the Ensham Business from Bowen Investment (Australia) Proprietary Limited. The transaction, valued at AUD48 million, will give Thungela full ownership of the Ensham Joint Venture, Ensham Coal Sales Proprietary Limited, the Nogoa Pastoral Joint Venture, and Nogoa Pastoral Proprietary Limited.
The acquisition follows Thungela's initial purchase of an 85% stake in the Ensham Business in September 2023, which marked the company's strategic expansion into Australia. Thungela Resources Australia Proprietary Limited, a wholly-owned subsidiary of Thungela, will complete the purchase, subject to regulatory approvals and conditions precedent, including approvals from the Foreign Investment Review Board and relevant government ministers in Australia, as well as the South African Reserve Bank.
The Ensham Business has been under Thungela's operational control since September 2023 and is anticipated to contribute significantly to the group's profits by the end of the 2024 financial year. The complete acquisition is expected to streamline administrative processes and generate synergies from technical and operational services provided by Thungela's South African shared services.
Thungela's strategic move into the Australian market is aimed at diversifying its production profile and customer base, with the Ensham Business providing access to markets in Japan and Malaysia and exposure to the Newcastle Benchmark coal price. The company plans to fund the acquisition from its existing net cash resources, maintaining sufficient liquidity for ongoing projects.
The transaction is not categorized under the JSE Limited Listings Requirements and is disclosed voluntarily for information purposes. This announcement contains inside information as defined under the Market Abuse Regulation and is now considered public following its release.
The acquisition is based on a press release statement from Thungela Resources Limited.
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