Burgh Group and Vitol to buy Optimum Coal Terminal from South Africa’s Tegeta

18 September 2016 (Last Updated September 18th, 2016 18:30)

A consortium consisting of Burgh Group and Vitol is set to acquire Optimum Coal Terminal (OCT) from South Africa's Tegeta Group.

A consortium consisting of Burgh Group and Vitol is set to acquire Optimum Coal Terminal (OCT) from South Africa's Tegeta Group.

OCT has a 7.61% stake in Richards Bay Coal Terminal (RBCT) in South Africa, which has an annual capacity of 91 million tonnes.

With the acquisition of interest in RBCT, Burgh Group will be able to expand its export business. Opened in 1976, the original capacity of RBCT was 12 million tonnes per annum.

"It will enable us to invest confidently in expanding our business and developing new and existing projects."

Burgh Group CEO Quinton van der Burgh said: "This is a major step forward for the Burgh Group. It will enable us to invest confidently in expanding our business and developing new and existing projects.

"We look forward to working with our partners, customers and stakeholders in this exciting phase of the company’s development."

The RBCT terminal is positioned at a deepsea port on a 276ha site and has the capacity to handle large ships and subsequent large volumes.

It has a quay 2.2km-long with six berths and four ship loaders, with stockyard capacity of 8.2 million tonnes.

Burgh Group primarily focuses on mining and industrial companies, especially in the coal sector.

At present, the group is producing 500,000t of coal per month, which is expected to increase to more than one million tonnes of coal per month by mid-2017. Burgh Group is currently developing new overseas markets for its coal.