Johannesburg, South Africa — MININGREVIEW.COM — 20 November 2008 – South African coal producer Sentula Mining Limited and its partner Siyanda Resources are seeking to raise as much as US$24 million (R250 million) from local banks in about five months for an expansion of its Koornfontein mine.
Bloomberg News quotes CEO Robin Berry as saying that the companies are able to fund the expansion on their own if – as he put it – “the markets really turn against us. Koornfontein mine is profitable and cash generative,” he added.
The news agency reports that Sentula is seeking to boost output to as much as an annual 20 million metric tonnes within five years to benefit from an expected rise in demand in South Africa, where power utility Eskom Holdings Ltd. is building at least two coal-fired plants. The expansion at Koornfontein – of which Sentula owns 49.9% – will cost about R820 million.
Bloomberg says Berry added that the company might make an announcement in about a week, after it had suspended trading in its shares in September pending completion of an investigation into possible irregular transactions.
The shares last traded at R8.60 on 10 September 2008.