Thungela Resources has agreed to sell its Goedehoop North mine to GHN Resources in a deal valued at R700m, exiting an unprofitable operation that is expected to stop producing this year.
The transaction, announced on Monday, will see Thungela dispose of the mining assets and all associated rehabilitation liabilities. GHN Resources, a privately held South African mining company focused on coal and related infrastructure assets, is acquiring the operation, with UK-listed group Bisichi, which controls GHN, guaranteeing payment obligations.
While the headline value of the deal is R700m, only R50m of the consideration is guaranteed upfront. The remaining R650m is deferred and depends on future mining activity and the use of site infrastructure.
The sale comes after Goedehoop North weighed on Thungela’s recent financial performance. In June, the net asset value of the operation stood at about R89m while the mine recorded a loss before tax of about R111m over the preceding six months.
Under the existing life-of-mine plan, production at Goedehoop is expected to cease in 2025. Coal from the site is processed on location and transported via a dedicated rail link to the Richards Bay Coal Terminal for export, but “declining reserves and rising costs have eroded its profitability”, the company said.
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