South Africa-focused Coal of Africa Limited (CoAL) has entered into a $20.5-million deal to acquire Pan African Resources subsidiary Pan African Resources Coal Holdings, which holds a 91% interest in the Uitkomst colliery, in KwaZulu Natal.
CoAL said on Wednesday said that while still considered its flagship project, the Makhado development was unlikely to generate cash flow during its preproduction phase over the next three to four years, prompting the company to acquire a cash-generating asset.
