South African resources company Exxaro has entered into a binding sale and purchase agreement (SPA) worth US$387m with Total for the acquisition of 100% of the issued share capital of Total Coal South Africa (TCSA) and its related export marketing rights under primary Richards Bay Coal Terminal (RBCT) allocation. TCSA is the fifth largest coal producer in South Africa and has a majority interest (74%) in two main operating complexes, Dorstfontein and Forzando, located in the Witbank coal basin in South Africa’s Mpumalanga province. TCSA recorded combined sales of approximately 4.5 Mt/year in 2013, mainly directed to export markets such as India and China. TCSA also owns a 49% interest in the Tumelo coal mine, with the remaining shareholding held by Mmakau, which is currently not in operation, and holds a 51% interest in the potential Eloff greenfields project, an undeveloped domestic thermal coal resource in Mpumalanga province. TCSA has a remaining resource base estimated at 1,498 Mt gross tonnes in-situ and 395 Mt of run-of-mine resources.
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