Africa Coal Partners, an SPV Set Up and Managed by Duet Group, Announced Today Its Acquisition of 45.18% Stake in Mbuyelo Coal Proprietary Limited (\"Mbuyelo\" or \"the Company\") From Ichor Coal N.V.

1 October 2019

LONDON, Oct. 1, 2019 /PRNewswire/ -- Africa Coal Partners, an SPV set up and managed by Duet Group, announced today its acquisition of 45.18% stake in Mbuyelo Coal Proprietary Limited ("Mbuyelo" or "the Company") from Ichor Coal N.V.

The agreed purchase price was set at Euro 95 million with the transaction expected to close in Q1 2020, once regulatory requirements have been completed.

Mbuyelo is a South African coal producer supplying the national power utility Eskom. It operates three (3) open pit mines with a minimum monthly production of 600 000 tons / month, thus averaging 7.2 to 8.0 million tons per annum.

Eskom generates about 90% of the electricity in South Africa of which 90% with coal fired power plants.

Mbuyelo has for the past few years been investing in capacity building and technology upgrade to better serve the local demand.

Henry Gabay, CEO and Co-Founder of Duet-Group, said: "We are very excited by the opportunities offered by the coal industry in South Africa. South Africa is not yet in a position to switch completely into green energy, hence coal will remain a key component of South Africa's energy portfolio for the foreseeable future. Reliable power production remains at the heart of Africa's industrialization and its ability to lift its citizens out of poverty.

"We believe that new technologies can be deployed to make the coal industry more environmentally sustainable while offering a credible solution to the challenges of generating power in South Africa. We also believe it's an opportunistic time to invest in South Africa."

Commenting on the transaction, Nonkululeko Nyembezi-Heita said, "We have been reviewing strategic options for some time and the opportunity offered by Duet meets our goal in a challenging environment with a partner willing to significantly contribute to Mbuyelo's growth and profitability."

Commenting on the transaction, Rirhandzu Siweya, CEO of Mbuyelo, declared, "I welcome the arrival of an African focused investor that will help us grow and seize new opportunities in a very interesting environment for local coal players."


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SOURCE Duet Group