BHP Billiton sells SA coal mine to BEE group for R430m

BHP BILLITON has finalised the sale of its Koornfontein coal mine in SA to a consortium of black investors for R430m, it said today.

The company first announced the sale in July last year and said today in a statement the deal closed yesterday.

The sale of a majority stake to a consortium of black investors also included 1,5-million tons of export capacity at the Richards Bay Coal Terminal.

The consortium - led by Siyanda Resources Ltd and AKA Resources Holdings Ltd - holds 50% plus one share in the mine while Coronation Capital and Investec Bank Ltd owns 50% minus one share.

BHP Billiton said it would provide R70m in vendor finance to help the consortium buy the mine, located 200-km east of Johannesburg, which produced 3-million tons of export-quality steam coal in the 12 months to June last year.