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Sibanye Gold Secures Coal Supply Before Building Power Plant

  • Sibanye buys A$22.5 million convertible note from Waterberg
  • Investment provides company with coal to generate electricty

Sibanye Gold Ltd., the biggest producer of South African bullion, agreed to invest in the Waterberg Coal Group to secure coal supplies and allow the company to generate its own electricity.

Sibanye will buy a convertible note from Waterberg’s lenders for A$22.5 million ($16 million) and inject A$8.5 million of working capital into the mining project in South Africa’s Limpopo province, the company said Thursday in a statement. Sibanye has the right to build a 51 percent shareholding in the venture in the 18 months after the deal closes.