Development work
underway at
Continental’s new
Penumbra mine
 
Johannesburg, South Africa — 10 April 2012 – Coal mining investment and production company Continental Coal (CCL) and its newly-appointed empowerment partner, the Sishen Iron Ore Company Community Development Trust (SIOC-cdt) are moving ahead with their partnership.

Under the terms of subscription and shareholder agreements executed in November 2011, SIOC-cdt agreed to acquire the 26% interest in CCL previously held by Masawu by way of a subscription for shares. SIOC-cdt has now commenced payment of R140 million of the loan to be advanced by it to CCL as required under the agreements.
 
Commenting on the agreement with SIOC-cdt, Continental Coal CEO Don Turvey, said “The partnership with SIOC-cdt is considered to be a landmark agreement, and we believe it will have a major impact on our business activities and opportunities in South Africa.

“In addition to the agreement and partnership itself, it now provides CCL with further capital of R140 million that will be applied to advance our South African coal projects,” he added.

SIOC-cdt board chairperson and newly appointed chairman of CCL Connie Molusi said “We are pleased that our investment in CCL has proceeded, and as a partner with Continental, we can now look forward to working together to further build on our thermal coal mining business in South Africa.”

Source: Continental Coal. For more information, click here.