Mining And Energy

South Africa’s mining sector remains a key pillar of the economy and is key to the industrialisation of the country and forms an important catalyst to job creation, and as such, is a key focus area of investment for Zungu Investments Co. The sector is characterised by a good balance of mature and green fields operations posing a high-quality and diverse range of mineral assets, mature mining infrastructure and a robust skills base, making it an ideal sector for investment.

Our portfolio in this sector includes:

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    Seriti Resources Holdings Proprietary Limited (“Seriti”):

    Seriti in which Zungu Investments Co. holds a 25% equity interest is 89% black owned. Seriti is a start-up, which was formed initially to acquire thermal coal asset from Anglo American plc (“Anglo”), supplying 23% of Eskom’s thermal coal requirements. It is the intention that Seriti will acquire other mining assets in South Africa and abroad.

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    Gold One International Limited (“Gold One”):

    Gold One is a resource company which is largely owned by Chinese state owned investment enterprises. Gold One developed and built the Modder East gold mine in Springs, South Africa, which went into commercial production during 2009. Modder East is a shallow, high grade short life mine with good life extension projects.

  • The Far East Gold Special Purpose Vehicle Proprietary Limited (“FEG”):

    FEG, a subsidiary of Gold One, is a South African incorporated gold mining exploration company. The company holds vast gold prospecting rights over several contiguous areas in South Africa’s Witwatersrand Basin in Gauteng. None of the FEG projects are operational.

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    Rockwell Diamonds Inc (“Rockwell”):

    Rockwell in which Zungu Investment Co. holds in excess of 7% is a mid-tier diamond mining and development company listed on the Toronto Stock Exchange with a secondary Listing on the JSE Limited. Rockwell’s objective is to create a growth-oriented mid-tier diamond mining and development company. To meet this goal, the company has an interest in several producing and exploration alluvial diamond properties in the middle orange river of South Africa.

  • Coza Mining:

    Coza Mining is a junior mining company in which Zungu Investments Co. has a minority interest and which is developing an iron ore project which is located close to Postmasburg in the Northern Cape Province. The development is a green-fields project that involves mining of iron from two pits.

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    Spring Light Gas Proprietary Limited (“SLG”):

    SLG is a prominent supplier of piped gas to industrial and commercial clients in KwaZulu-Natal. SLG offers its customers a customised, sustainable and environmentally-friendly energy solution. It utilises a growing pipeline network that covers major industrial hubs in Durban, Newcastle and Richard’s Bay. SLG’s customer base includes some of the most prominent blue-chip industrials in the country. SLG has recently commissioned its plant for Compressed Natural Gas for distribution in KwaZulu-Natal.

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    Scinta South Africa Proprietary Limited (“Scinta”):

    Scinta concluded a R187 million transaction, in which Scinta will acquire the Davel mining right from South32 (“the Davel Right”), once the right has been granted by the Department of Mineral Resources.  As part of the transaction, Scinta also acquired the previous Ermelo Mines infrastructure, railway loop and discard dump.

    It is estimated that the Davel Right contains more than 400 million tons of export and Eskom grade coal, with is anticipated to yield in excess of 80%.  Once in production, the Davel Mine will benefit from the existing rail and handling infrastructure at Ermelo Mines, which will allow Scinta to produce at a significantly reduced all-in cost of production.  It is expected that Scinta will sustain a life of mine of over 50 years, during which time it is expected to produce at least 5 million tons of saleable product per year.

    Scinta also envisages that more than 4 million tons of the existing discard dump at Ermelo Mines will be treated by it, with the product delivered to Eskom.  This will allow for early positive cash flow from the project.