A consortium comprising Burgh Group and Vitol has agreed to acquire Optimum Coal Terminal (OCT) from the Tegeta Group for an undisclosed sum, subject to the relevant regulatory approvals and other conditions precedent.
OCT has a 7.61% shareholding in Richards Bay Coal Terminal (RBCT), South Africa’s leading coal terminal with an annual capacity of 91 million tonnes.
The Burgh Group comprises a range of businesses, but its core focus is mining and industrial companies, notably in the coal sector. Its interests include coal mining, marketing and mining equipment. Burgh Group companies currently produce 500,000 tonnes of coal per month, which is set to grow to over a million tonnes of coal per month by mid-2017.
Burgh Group has an established domestic business in South Africa. In addition, it is developing new overseas markets for its coal. The acquisition of the shareholding in RBCT would facilitate the expansion of Burgh Group’s export business, in regard to which it is working with Vitol’s established coal team.
Burgh Group’s coal operations currently employ 600 employees. As the business expands, it is anticipated that this will grow to over 1,000 by March 2017. Furthermore, Burgh Group is committed to operating in accordance with industry leading HSE standards and operates its business in accordance with relevant BEE Codes of Good Practice.
Commenting on the transaction, Quinton van der Burgh, CEO of Burgh Group said; “This is a major step forward for the Burgh Group. It will enable us to invest confidently in expanding our business and developing new and existing projects. We look forward to working with our partners, customers and stakeholders in this exciting phase of the company’s development.”