South African firm Oakbay Investments has signed an agreement to sell its mining unit Tegeta to Swiss-based Charles King SA for R2.97bn ($224.66m).
Tegeta comprises Optimum, Koornfontein and the Optimum Coal Terminal, which emerged from business rescue less than a year ago.
Under the agreement, the Swiss buyer needs to preserve jobs in the mines and has to assign a minimum of 30% shareholding to a black empowerment partner.
Oakbay Investments acting chief executive Ronica Ragavan told media sources: “The sale of Tegeta represents a further step forward in delivering our strategy of preserving jobs by securing the future of the businesses we have developed and grown.”
According to the company, the decision has been taken to ensure employment security to its workers.
Charles King SA owner Amin Al Zarooni said that the company has been looking to invest in South Africa as opportunities in the country’s mining are attractive.
Formed in 2006, Tegeta holds two mining rights for coal, Brakfontein and Brakfontein Extension in the Delmas area and prospecting rights in Mpumalanga, Free State, KwaZulu-Natal (KZN) and Limpopo.
According to the company’s website, the mine produces an average of 4,000t of coal per day, with plans to mine 400,000t per month.