The listing of junior miner Salungano on the JSE (Johannesburg Stock Exchange) has been suspended because the company failed to publish its 2023 results within the prescribed time as required by the exchange’s listing requirements.
- A creditor has applied to the court to have a subsidiary of Salungano, which includes the Khanyisa and Elandsfontein colliers, placed in provisional liquidation.
- Salungano, formerly known as Wescoal, is a broad-based BEE (Black Economic Empowerment) firm that primarily mines coal. Its main customer is Eskom, according to its 2022 annual report.
- Salungano is opposing the liquidation proceedings and intends to apply to the court to have its division, Wescoal Mining, placed under business rescue. Business rescue would protect the division from legal action and allow independent practitioners to attempt to save the business.
- Wescoal Mining includes the Khanyisa complex, an opencast coal mine near Ogies in Mpumalanga, and the Elandsfontein mine and processing plant, located west of Middelburg.
- Salungano has experienced financial losses in recent years. In 2022, it lost R37 million despite high coal prices and earning R5 billion in revenue. It lost R36 million in 2021 and R137 million in 2020.
- Salungano has been facing challenges, including the resignation of three board members from key committees and a delay in releasing its annual results due to the finalization of funding refinancing agreements.