In a development that could kickstart a huge revival of JSPL’s presence in South Africa, the company’s subsidiary in the southern African nation has come out of what’s known as the Business Rescue process after reporting cash profits for the quarter ending September 2019.
A JSPL spokesperson said that Jindal Steel & Power Limited’s step-down subsidiary, Jindal Mining South Africa Proprietary Limited (JMSA), a company incorporated in South Africa has ‘turned around and reported cash profits in the recently completed quarter ending September 2019.’
JMSA had entered into Voluntary Business Rescue in April-May 2019. With a view to protecting the interests of various stakeholders and with a long-term vision of turning it profitable & sustainable, the company had taken the strategic decision to take the Business Rescue (BR) route. As part of the BR, the company engaged with stakeholders to restructure the liabilities (both Operational and Financial) to make the business profitable in the long run.
The operations at JMSA are now stable and ramping up well and is out of the Business Rescue (BR) process. JSPL will be looking to monetize this anthracite coal asset as part of its International Portfolio Rationalisation Plan.
About Jindal South Africa
Jindal Mining South Africa (JMSA, acquired in 2009) has an underground coal mine in South Africa – Kiepersol. The Kiepersol Colliery (Kiepersol Colliery or Kiepersol) comprises a Mining Right for coal over a total area of 2,453.2 hectares (ha) located in the Mpumalanga Province of South Africa.
The Kiepersol Colliery remains a prominent producer of high quality anthracite and lean bituminous coal, which is sold on both the domestic and international metallurgical coal markets, and is all made possible with a dedicated private railway siding which forms the bulk of the company’s infrastructure, which in turn enables the mine to dispatch orders directly to clients and to the ports for exports thereby maintaining the high quality service and delivery standards its clients have become accustomed to. The South Africa mine also has a 1.20 MTPA wash plant that allows us to produce various high grade metallurgical products for the local and international markets.
The anthracite coal from the colliery has low sulphur and phosphorus content and the mine is a supplier to ferroalloy manufacturers in South Africa and abroad, to customers in the Middle East, India, Europe and China. Private railway enables the mine to dispatch orders directly to customers and to shipping ports for export.
Kiepersol Colliery – Highlights
· Location: Kiepersol Colliery is situated 35km southwest of the townof Piet Retief, Mpumalanga, South Africa.
· Logistics: – Captive Railway Siding – 35 km from mine;Railway Siding to Port distance – 337 km. Presently the company has facility of loading up to Panamax size vessels from its Richards Bay Dry bulk terminal.
· Acquisition: July 2009 (74% ownership)
· Reserve: 22MT (Proved)
· Operations: Currently operating three sections in two seams.
· Wash Plant : Two stage wash plant with capacity of 1.2 MTPA
· All equipments for mining, washing and transport are owned in-house
· Infrastructure owned includes main and site offices, stores, workshops, clinic, training centre and guest houses in Piet Retief.
· Manpower: Total manpower 204 (excluding mining and labour contractors)
JMSA was in Business Rescue. However, the company has turned around and successfully exited business rescue. The company is ramping up production and is producing positive EBITDA YTD FY20.