South Africa's Wescoal
Wescoal Mining paid an initial share capital of 60 rand for the stake in the new company, meant to transfer the prospecting rights granted by the Department of Minerals and Energy from Proudafrique and other individual owners. Proudafrique, a black-owned company, has purchased the remaining 40 percent of the new company.
Wescoal's shares traded 4.55 percent up at 2.53 rand at 0941 GMT against a 0.12 percent drop in the All Share index <.JALSH>.
Wescoal, which is involved in coal washing and coal trading, and sources its coal from mines and other suppliers, said the acquisition was in line with its aim of expanding into the fast-growing coal-mining industry and to take advantage of high inland and export prices.
By becoming a primary producer of coal product, Wescoal can enter new markets such as export, Eskom and the cement industry, Wescoal said.
South Africa's state utility Eskom [ESCJ.UL], has struggled to meet power demand in Africa's biggest economy, owing partly to a shortage of coal stocks at its coal-fired power stations.
Eskom uses coal as the primary raw material for electricity generation, and produces 95 percent of the country's needs. (Reporting by Serena Chaudhry; Editing by Quentin Bryar)
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