Total has signed an agreement with Exxaro Resources for the sale of its 100% stake in Total Coal South Africa (TCSA), its coal-producing affiliate in South Africa. The consideration for the transaction is $472 million, with completion of the sale subject to approval by the relevant South African authorities.
“This sale is part of the group’s 2012-14 asset sale program and is in line with Total’s objectives to focus on its core activities and to actively manage its portfolio,” said Philippe Sauquet, President Gas & Power, Total.
“While Total has made the necessary investments to position TCSA for growth in the medium term, Total believes TCSA will have the opportunity to maximize its long term potential with a new strategic coal investor. Total remains committed to South Africa, through its activities in marketing and refining, solar and deep offshore exploration.”
Total in South Africa
TCSA operates three coal production complexes in the Witbank/Highveld Coalfields and has a majority interest in a significant prospecting project located in the same area. It is also a shareholder of the Richards Bay Coal Terminal to which these mines are connected through a railway line. In 2013, TCSA’s sales of high quality thermal coal were 4.5 million tons, of which 95% was exported to international markets, making TCSA the 5th largest coal exporter in South Africa.
Present in South Africa since 1954, the group is now the country’s fifth-ranked marketer of petroleum products, with sales of 3.1 million tons per year, a network of 528 service stations, its biggest outside Europe, and a 36.6% interest in the Natref refinery alongside Sasol. Total is also South Africa’s third-ranked LPG marketer.
SunPower: Total’s solar affiliate
Total’s solar affiliate, SunPower, is active in ground-mounted solar power plants and off-grid solar facilities in South Africa. In June 2014, it commissioned two photovoltaic solar plants with a combined capacity of 33 MW near Douglas in the Northern Cape. In addition, following a bidding round the South African government selected Total to build an 86 MWp power plant equipped with SunPower’s high efficiency technology in Prieska, also in the Northern Cape. The Group is also implementing decentralized rural electrification programs through Kukhanya Energy Services (KES).
In the Upstream, Total operates Block 11B/12B, where it recently commenced operations on the first exploration well in the deep offshore Outeniqua Basin.