Strategic Natural Resources subsidiary signs supply agreement
SNR's 74% owned subsidiary, Elitheni Coal has signed a local coal supply agreement with a Bio-Ethanol Project in the Eastern Cape, initiated by the local government.
SNR's 74% owned subsidiary, Elitheni Coal has signed a local coal supply agreement with a Bio-Ethanol Project in the Eastern Cape, initiated by the local government.
The 20-year agreement is for a total of 70,000 tonnes per year of washed coal from the Elitheni mine to be supplied to a Bio-Ethanol plant in the Eastern Cape. The project will be producing its own power fuelled by Elitheni's coal.
The project is being funded by the Industrial Development Corporation, a national development finance institution owned by the South African government and set up to promote economic growth and industrial development.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Chief executive officer David Nel said: "Supplying our coal to local industry is a strategy we as a company have considered to be viable for a long time and it is encouraging to see our endeavours come to fruition after a great deal of interaction with the IDC.
"Although Elitheni will primarily be an export mine, given its significant reserves, the company will continue to work with local industry with the aim of supplying coal for use in industrial steam and power production."
The share price rose 2.02% to 12:62p by 16:30.
NR
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
Twenty 'finfluencers' questioned under caution by the UK regulator
The individuals were interviewed voluntarily using the Financial Conduct Authority’s criminal powers
By Chris Newlands Published
-
Number of ISA millionaires triples in three years
The number of people with £1 million in their ISAs has tripled in three years to reach 3,180. But could next week’s Budget put an end to future ISA millionaires?
By Ruth Emery Published