Blumont Group has made another foray into coal mining, a move to take a 15% interest in Resource Generation Limited, a coal miner in which Noble Group also has a stake for up to AUD 22.11 million.
As part of its strategy to become a company with multiple and diversified mineral resource and energy assets, Blumont plans to pump between AUD 20.97 million and AUD 22.11 million into RES for new shares at AUD 0.22 apiece that will give it a 15% stake in the enlarged capital of RES, which is listed on both the Australian Securities Exchange and the Johannesburg Stock Exchange.
Proceeds from the exercise will be used to develop RES's Boikarabelo coal mine located in the Waterberg region of South Africa, which has probable reserves of 744.8 million tonnes and existing gross resources of 6.4 billion tonnes. Blumont is funding the investment from internal resources.
Mr Neo Kim Hock CEO of Blumont said that "We are strengthening our earlier entrance into the thermal coal space. We foresee that the Waterberg Boikarabelo coal mine will be the centrepiece in our global thermal strategy," adding that the acquisition would give Blumont an opportunity to be involved in a world-class thermal coal play in one of the few big-scale thermal coal projects left outside China.
