LontohCoal looking for $1bn to develop a coal operation in Zimbabwe

LontohCoal looking for $1bn to develop a coal operation in Zimbabwe
Published: 21 January 2012 (1390 Views)
LontohCoal Ltd, set to be the first African company to list in Hong Kong, may double the size of its share sale to as much as $1 billion to develop a coal operation in Zimbabwe.

The initial public offering (IPO) proceeds will accelerate our ability to get into the construction phase, chief executive officer Tshepo Kgadima said today in an interview in Hong Kong. Sandton, South Africa-based LontohCoal plans to list in the first half, he said.

Globally basic material companies, including miners, boosted IPOs by half to $23 billion last year as China, the biggest resource consumer, continued purchases. China will buy as much as 80% of LontohCoals planned exports.

There will be follow-through financing either through a bond issue or by coming back to the market and issuing more equity, Kgadima said.

LontohCoals Lubimbi operation will include a $5,5 billion coal-to-liquids plant, a 1 200km slurry pipeline and a port in Mozambique.

The port and pipeline may cost between $1,3 billion and $1,5 billion, he said. The company may consider a joint venture partner for the pipeline.

The Lubimbi project, which is 51% owned by LontohCoal and the remainder by local shareholders, will produce 46 million metric tonness of thermal and coking coal a year, Kgadima said. The conversion plant will be able to produce 50 000 barrels per day, Kgadima said.

Rio Tinto group and Vale South Africa are also investing in ports in Mozambique to serve their mines in the nation. Rio Tinto signed an agreement today with Ncondezi Coal Ltd to study construction of a port and railways, according to Ncondezis statement.

Vale, the worlds largest iron-ore producer, is investing $4,4 billion to upgrade its Nacala port and build a 912km railway line.

Samsung Securities Co is advising LontohCoal and the company is seeking to appoint one or two other mainland Chinese banks and one European bank, said Kgadima, declining to give names.

The company has an anthracite coal mine in South Africa, producing 110 000 tonnes a month that will be expanded to a rate of 150 000 tonnes by the end of the year, he said.

Its finalising a long-term sales agreement with a Chinese state-owned company in the steel industry, he said, declining to give the companys name.

It has an agreement to deliver 40 000 tonnes per month of anthracite to a Chinese cement manufacturer in Ethiopia, according to a November 22 presentation on the companys website. 

- Bloomberg

 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Knox Mutizwa wins August Goal of the Month award

by kickoff | 05 November 2018 | 739 Views

BREAKING: Gandawa on the run

by Staff reporter | 05 November 2018 | 1442 Views

Econet cannot distribute Kwese TV content to Zimbabwean viewers

by Staff reporter | 05 November 2018 | 1086 Views

Shoot-out robbers arrested

by Staff reporter | 05 November 2018 | 1128 Views

Mnangagwa ally warns economic saboteurs

by Staff reporter | 05 November 2018 | 1105 Views

Chamisa mobilises supporters for mass protests

by Staff reporter | 05 November 2018 | 909 Views

LISTEN: Acie Lumumba speaks on how he got paid

by Staff Reporter | 05 November 2018 | 741 Views

Dzamara speak on Zanu-PF fights

by Mandla Ndlovu | 05 November 2018 | 712 Views

Minister Raj Modi Modi donates salary

by Mandla Ndlovu | 05 November 2018 | 589 Views

'I am a Trillionaire' Magaya says

by Mandla Ndlovu | 05 November 2018 | 970 Views

Supermarkets to be blacklisted over cooking oil

by Mandla Ndlovu | 05 November 2018 | 613 Views

UK army to recruit from Commonwealth

by BBC | 05 November 2018 | 646 Views

Magaya opens up on arrest

by Mandla Ndlovu | 05 November 2018 | 638 Views

Kambarami is still 'Deputy Mayor'

by Mandla Ndlovu | 05 November 2018 | 516 Views

'Import ban must not go beyond December 21'

by Staff reporter | 05 November 2018 | 601 Views

Prophet Magaya puts fresh spin to arrest

by Staff reporter | 05 November 2018 | 602 Views

Chamisa's sign language interpreters get thumps up

by Staff reporter | 05 November 2018 | 589 Views

Mnangagwa to review Mthuli Ncube's 2% tax again

by Staff reporter | 05 November 2018 | 569 Views

Lumumba to be probed by ZAAC?

by Staff reporter | 05 November 2018 | 415 Views

Dzamara speak on ZANU PF fights

by Mandla Ndlovu | 05 November 2018 | 382 Views

Zimbabwe as a new gateway into Africa

by Minister of Finance Prof Mthuli Ncube | 05 November 2018 | 580 Views

Chiwenga's ex-wife looted millions

by Mandla Ndlovu | 05 November 2018 | 939 Views

We are our own worst enemies

by Mapozho Saruchera | 05 November 2018 | 631 Views

Mnangagwa to deal with unexplained wealth and bank deposits

by Staff reporter | 05 November 2018 | 601 Views

WATCH: Chiwenga talks about Prophet Walter Magaya's lipstick

by Staff reporter | 05 November 2018 | 583 Views

Lumumba Saga takes new twist....War vets bay for Mutsvangwa's blood

by Mandla Ndlovu | 05 November 2018 | 663 Views

Chamisa demands Presidency

by Mandla Ndlovu | 05 November 2018 | 553 Views

Zimbabwean teachers miss out on New Zealand opportunity

by Staff Writer | 05 November 2018 | 495 Views

Zimbabwe to introduce e-provisional driver's exams

by Staff reporter | 05 November 2018 | 539 Views

Zimbabwe to supply water to South Africa

by Staff reporter | 05 November 2018 | 533 Views

Mnangagwa claims that 'good times will soon roll'

by Staff reporter | 05 November 2018 | 510 Views

Zimbabwe as a new gateway into Africa

by Hon. Prof Mthuli Ncube | 05 November 2018 | 573 Views

Chiyangwa appoint Karikoga Kaseke

by Staff reporter | 05 November 2018 | 509 Views

ZCTU demo: Ruling today

by Staff reporter | 05 November 2018 | 462 Views

Missing cop found dead

by Staff reporter | 05 November 2018 | 584 Views

Tagwirei marries long-time girlfriend

by Staff reporter | 05 November 2018 | 906 Views

Zimbabwe relaxes maternity leave entitlement

by Staff reporter | 05 November 2018 | 548 Views

Zimbabwe to receive drugs, ambulances from India

by Staff reporter | 05 November 2018 | 464 Views