BHP Billiton Sells the Optimum Colliery



The Optimum Colliery produced 11.6 million mt in 2007.
During mid-May, BHP Billiton announced that it reached an agreement to sell Optimum Colliery in South Africa, together with 6.5 million mt/y of Richards Bay Coal Terminal entitlement to an entity controlled by a Black Economic Empowerment (BEE) consortium, Optimum Coal Holdings (Pty) Ltd. (OCH). OCH is a broad-based BEE grouping led by Eliphus Monkoe, former COO for BHP Billiton Energy Coal South Africa. OCH has 65% BEE ownership, including 12.5% to be issued each to employees and the communities.

The sale will become effective July 1, however, BHP Billiton will continue to manage and operate Optimum until completion. BHP Billiton will also acquire and market substantially all export coal from Optimum over the life of the mine. Completion of the sale is subject to the conversion and transfer of Optimum’s mining rights in terms of the Minerals and Petroleum Resources Development Act of 2002. OCH will also take full responsibility for all Optimum liabilities including environmental rehabilitation and water management.

“This is an important BEE transaction and BHP Billiton is very pleased with th outcome of the sale process,” said Wayne Isaacs, current COO, BHP Billiton Energy Coal South Africa. “We believe that the new ownership structure is in the best interest of all stakeholders, particularly as we understand that Eliphus and his team will be committing substantial capital and resources into the mine to ensure its long term sustainability.”

The Optimum Colliery is situated 200 km east of Johannesburg in Mpumalanga Province. It supplies energy coal to Hendrina power station as well as the export markets. The mine produced 11.6 million mt of saleable steam coal in the 12 months to June 2007 (including 5.4 million mt of export coal).


As featured in Womp 08 Vol 5 - www.womp-int.com