The company acquired the Elandspruit mine last year from Glencore Xstrata for ZAR93.81m ($8.81m). The mine is expected to produce 200,000 tons of coal per month by the end of 2015.
Wescoal’s board has approved future capital expenditure of ZAR170m ($15.9m) for the commissioning of the Elandspruit colliery, including the purchase of an existing plant, mine operational infrastructure, surface rights and production start-up costs.
The company also entered into an agreement with Muhanga Mines to acquire the latter’s coal processing plant, and certain liabilities.
Wescoal said in a statement, "The acquisition of Muhanga Plant gives Wescoal immediate access to a fully fledged beneficiation asset that is currently operational, has all the necessary regulatory approvals and extensive infrastructure to allow for a multi-product operation whilst regulatory approvals are awaited for the Elandspruit site."
Wescoal Holdings CEO Andre Bojé said that a new processing plant would require ZAR300m ($28.1m)
For the year ending 31 March 2014, the company reported 69.5% increase in revenues to ZAR1.1bn ($103.3m), compared with ZAR676.9m ($63.6m) in 2013.
