Wescoal Holdings Limited (“Wescoal”) is a listed entity on the main board of the JSE. The main business of the entity is mining, processing, sale and supply of coal and coal-related products. The company’s mining division consists of three mines/collieries which are Elandspruit, Khanyisa and Intibane, all of which are located in the Mpumalanga Province. The company’s trading division consists of Chandler Coal and McPhail. Simeka and its partners currently control approximately 47% of Wescoal, through an initial investment in 2015 and a subsequent investment in 2016. During 2017, Wescoal concluded the acquisition of Keaton Energy Holdings Limited (“Keaton”), which was subsequently delisted from the JSE. The Keaton acquisition has been value accretive for Wescoal and the integration of the companies will cement Wescoal’s position as the largest and most profitable junior coal miner in the South African market.
Kangala Colliery is controlled by ASX –listed Universal Coal plc and is located approximately 65km east of Johannesburg, in the Witbank coalfield in Mpumalanga Province, which supplies more than 50 % of South Africa’s saleable export and domestic coal. An 8-year Coal Supply Agreement with the major South African power utility Eskom was executed in March 2013, renewable for another 8 years. A Life-of-Mine off-take Agreement was concluded with Exxaro Coal for the export thermal coal product. The greater project consists of three properties; Wolvenfontein (location of the Kangala mine), Middelbult and Modderfontein located near several coal-fired power stations and benefits from excellent road, rail and power infrastructure. Simeka is the black economic empowerment shareholder in Kangala, having acquired a shareholding of approximately 30% during 2013. Mine development at Kangala commenced in May 2013 and the first saleable coal was delivered in April 2014, on time and within budget.