Grindrod has raised R2.4
billion of the planned
R3 billion it needs
to acquire in capital
for new projects in the pipeline,
which include the expansion of
the Richards Bay coal terminal in
the KwaZulu Natal port city.
“Aside from the Richards Bay
terminal, these projects include
the expansion of the Matola coal
terminal in Mozambique and
the oil tanking facilities and will
take advantage of the enormous
opportunity in our rail division,”
said a Grindrod spokesperson.
The issue and placement of
96 million shares to qualifying
investors at R25 each was
concluded in May, raising the
R2.4 billion. Further to this book
build, Grindrod has acquired
the current Black Economic
Empowerment (BEE ) interests
in certain Grindrod subsidiaries
and entered into a new BEE
transaction at the Grindrod
Limited level.
Looking specifically at the
expansion of RBT Grindrod
Terminals in Richards Bay,
RBT Resources and Grindrod
entered into an agreement last
year to expand and develop the
existing Navitrade operation and
adjoining RBT land into a fully
mechanised coal export terminal.
Bongani Biyela, chief executive
at RBT-Grindrod Terminals,
said that the existing facility,
Navitrade, was already in
operation and was an ideal
terminal for junior miners. Its
current throughput capacity is
3 million tons per annum and
will increase gradually over
three phases: 5 million tons in
the next six months and then
8 million tons, 10 million tons
and eventually 20 million tons’
annual throughput capacity.
Biyela noted that an inland
terminal would be developed
when the annual throughput
capacity reached approximately
8 million tons. “This will allow
junior miners to consolidate
greater volumes so that those
with low production volumes
have access to export markets
and can exploit economies
of scale as a collective.
The terminal could then
accommodate different grades
of coal, spot loading and
beneficiation,” he said.
The intention is to allocate
50% of the terminal capacity
to emerging black miners, and
50% to mature BEE mining
companies who will be the
anchor tenants, said Biyela.
CAPTION
An aerial view of the Richards Bay coal terminal. Photo: Grindrod
