Universal Coal Plc agreed to acquire the North Block Complex, an open cast coal operation in South Africa, from Exxaro Resources Ltd. for 170 million South African rand. Exxaro Resources was previously mulling the sale.
The company's subsidiary North Block Complex Pty. Ltd. signed the sale and purchase agreement with Exxaro Coal Mpumalanga Pty. Ltd. and Exxaro Coal Pty. Ltd.
The North Block Complex is owned 51% by Ndalamo Resource Pty. Ltd. and 49% by Universal unit Universal Coal and Energy Holdings South Africa Pty. Ltd.
Following the acquisition, which is expected to complete Dec. 31, the North Block Complex will operate on a stand-alone basis and will be managed by Universal Coal and Energy Holdings South Africa.
The North Block Complex consists of the Glisa and Eerstelingsfontein operating mines, and the undeveloped Paardeplaats prospecting right.
Universal said March 8 it intends to convert the North Block Complex to a multiproduct operation with the gradual inclusion of the adjacent Paardeplaats project.
The Paardeplaats project is estimated to produce 25.1 million tonnes run of mine over a 10-year mine life.
