South African focused Continental Coal Ltd
(ASX:CCC) says it is poised to become the country’s latest export coal producer, following the acquisition of South African coal miner and producer Mashala Resources.
The acquisition that is valued at $US35 million, provides Continental Coal with immediate coal production in addition to key Richards Bay Coal Terminal and Transnet Freight Rail contracts.
CEO Don Turvey says Mashala will have a fundamental impact on Continental’s development in South Africa and will allow the company to become a significant exporter of thermal coal much earlier than originally planned.
Continental Coal improved its net profit to $24.93 million in the year to 30 June 2010.
