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Zululand Anthracite Colliery

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The Zululand Anthracite Colliery in South Africa is an underground anthracite mine operated by the Australian coal company, Riversdale Mining. Riversdale owns a 74% share in the project with the remainder held by its Black Economic Empowerment partner (BEE), the Maweni Mining Consortium.[1] In 2010 the mine produced approximately 645,000 tonnes a coal and employed 951 people.[2]

The mine was previously owned by BHP Billiton subsidiary Ingwe Collieries Limited. (Riversdale entered into an agreement to purchase the project in February 2005).[3]

In December 2010 Rio Tinto announced that they had offered $16 cash for each share in Riversdale Mining. In a media release the company stated that "acquisition provides Rio Tinto with a substantial tier one coking coal development pipeline in the emerging Moatize Basin in Mozambique, in line with Rio Tinto's strategy of developing large, long-life, low operating cost assets to grow shareholder value."[4] Subsequently, Rio Tinto confirmed that if they were successful with the takeover offer they would sell off Zululand Anthracite Colliery.[5]

2010 financial results

In its 2010 annual report Riversdale Mining stated that "Zululand Anthracite Colliery (ZAC) operating earnings before interest, income tax and non-controlling interests in the current year was $13.4 million, compared with $17.7 million in 2009. Increased sale volumes during the year were offset by higher mining costs, royalties, and depreciation."[6]

Articles and resources

References

  1. Riversdale Mining, "Zululand Anthracite Colliery ", Riversdale Mining website, accessed January 2011.
  2. Riversdale Mining, "Operating & Financial History", Riversdale Mining website, accessed January 2011.
  3. Riversdale Mining, Annual Report 2005, Riversdale Mining, September 2009, pages 5-6.
  4. Rio Tinto, "Recommended A$16 per share cash offer by Rio Tinto for Riversdale", Media Release, December 23, 2010.
  5. Jamie Freed, "Rio would sell mine in South Africa", Australian Financial Review, January 11, 2011, page 35. (Not available online).
  6. Riversdale Mining, "Annual Report 2010", Riversdale Mining, September 2010, page 15.

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