Thungela to acquire remaining interest in Ensham business for $29.9 million

Feyisayo Ajayi -
Key Points
  • Thungela acquires the remaining 15% of Ensham Business for AUD48M, achieving full ownership and boosting operational control.
  • Ensham Business is expected to contribute 35% of Thungela’s group profit before tax by the end of 2024.
  • The acquisition supports Thungela's diversification strategy, strengthening its production profile and export markets in Japan and Malaysia.

Thungela Resources, a leading thermal coal exporter led by South African executive July Ndlovu, has reached an agreement to acquire the remaining 15 percent interest in the Ensham Business in Australia for AUD48 million ($29.9 million). 

The deal, subject to regulatory approval, will give Thungela full ownership of the Ensham coal mine and associated assets, reinforcing the company’s strategy to expand its footprint in key export markets.

Thungela finalizes Ensham stake acquisition

The acquisition, structured through its subsidiary Thungela Resources Australia Proprietary Limited, will acquire the remaining stake in the Ensham Business, completing its initial 85 percent purchase in February 2023. Funded from existing cash reserves, the transaction ensures liquidity for ongoing projects.

Thungela assumed operational control of the Queensland-based mine in September 2023. This latest deal secures Bowen Investment (Australia) Proprietary Limited’s minority stake, cementing full ownership.

CEO July Ndlovu emphasized the strategic value of the acquisition: “This strengthens our geographic diversification, production profile, and market presence in Japan and Malaysia, unlocking greater value through our technical expertise.”

The Ensham Business includes the Ensham Joint Venture, Ensham Coal Sales Proprietary Limited, Nogoa Pastoral Joint Venture, and Nogoa Pastoral Proprietary Limited. Using mechanized underground bord and pillar mining methods, the operation is expected to contribute 35 percent of Thungela’s group profit before net finance income and tax by 2024’s end.

Thungela expands, diversifies in Asia-Pacific

Since its 2021 demerger from Anglo-American, Thungela has undergone significant expansion under South African executive July Ndlovu’s leadership.

The company’s total assets increased by 18.54 percent in the first half of 2024, reaching R46.02 billion ($2.58 billion) by June 30, 2024, up from R38.83 billion ($2.18 billion) at the end of 2023.

Thungela’s recent acquisition underlines its commitment to geographic diversification and leveraging coal market opportunities in the Asia-Pacific region, strengthening its position in the global coal supply chain.