Seriti inks deal for South32’s coal business

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Seriti Resources poised to become SA’s second-largest coal producer after Exxaro

Mike Teke’s Seriti Resources is poised to become SA's second-largest coal miner after reaching a deal to acquire the coal assets of Australian miner South32.

Under the deal, Seriti will make an upfront payment of R100m, while South32 will receive 49% of the free cash flow from the assets, capped at a maximum of R1.5bn per year. This will run from the completion of the deal, until March 2024, the companies said on Wednesday.A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

 

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