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
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
-
What does Rachel Reeves’s plan for growth mean for UK investors?Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
