RBH holds an effective 65% (directly and indirectly) of South African Coal Mining Holdings (SACMH), a coal producing company.
SACMH Ltd is a coal-producing company, specializing in low-seam open cast and underground coal mining. The company acquired 2 coal mines in the Mpumalanga Province, with Ilanga coal mine situated in the Witbank coalfield and Umlabu in the Breyten area. Ilanga has essentially reached the end of its operating life, but plans to restore operations by end-2008 are being evaluated. Umlabu has a life expectancy of some 19 years. At present Umlabu’s annual production is approximately 1.2 million tons.
Currently SACMH has a 207 000 tonne allocation at the Richard Bay Coal Terminal (RBCT) through the Quattro Allocation process. An application for 2008/09 allocation was made and results of the application were expected by mid-February.
In May 2007, an export allocation of 500 000 tonnes in the Phase V expansion of the Richard Bay Coal Terminal was made to SACMH and is due to come into effect in 2009. This 500 000 tonnes allocation translates to 5 000 shares in the Richards Bay Coal Terminal and one seat on the board. The export allocation awarded to SACMH has important significance to the Group becoming a fully fledged producer and exporter of South African coal.
Royal Bafokeng Capital, a 50.1% subsidiary of Royal Bafokeng Holdings is the controlling shareholder in SACMH Ltd with a 65% interest. The company recently announced its strategic partnership with Fraser Alexander for provision of material handling and beneficiation services.
Thabo Mokgatlha
Lucas Ndala
