Exxaro Resources sells Arnot coal mine in SA to former employees

In South Africa, the Arnot coal mine will soon be operational again. Exxaro Resources transferred the mining rights and its movable and immovable assets free of charge to former employees brought together in a private entity called Innovators Resources (IR).

The latter has partnered, we learn, with Wescoal Holdings in the framework of a 50/50 partnership. The objective is to revive the mine and generate value. Coal production will mainly be sold to Eskom, the South African company in charge of electricity.

“We are pleased that Wescoal Mining is the partner that allows, within the framework of the relationship with IR, to release the value of these coal reserves which would otherwise have been immobilized by a standard mine closure process”, a commented Reginald Demana, CEO of Wescoal.

Previously operated by Exxaro, the Arnot mine would still host a reserve of 190 million tonnes of coal.