Johannesburg, South Africa — 03 July 2012 – The Competition Tribunal has approved Petmin’s R259 million transaction to dispose of the SamQuarz silica mine, following an appeal against the Competition Commission’s earlier decision to prohibit the sale.
Miningmx reports that the Tribunal’s ruling, along with Section 11 approval for the sale from the Department of Mineral Resources, has made the deal unconditional as at 29 June. The disposal of SamQuarz to Thaba Chueu was announced in September 2011.
The proceeds from the sale equate to an average net return for Petmin of 45% year-on-year, after tax, for the six years since it acquired the operation for R85 million, the company said.
“Thaba Chueu has acquired a good asset and Petmin has made a good return,” said Bradley Doig, the Petmin director who is responsible for operations and expansion abroad.
SamQuarz – which is near Delmas in Mpumalanga – is the largest producer of high-quality silica in South Africa and a key supplier to the clear glass and metallurgical industries. It has stable production of 1.1Mtpa, and a life of mine in excess of 40 years.
Proceeds from the disposal will help fund Petmin’s organic growth and current projects, which focus on commodities in the steel value chain required for urbanisation and infrastructure development, the company said.
Source: Miningmx. For more information, click here.