La­bat buys ma­jor stake in Or­min

The Star Early Edition - - BUSINESS REPORT -

LISTED La­bat has agreed to ac­quire 51 per­cent of the is­sued share cap­i­tal of Or­min Coal for R16 mil­lion. Ex­plain­ing the ra­tio­nale for the ac­qui­si­tion, La­bat said yes­ter­day that it was grow­ing its ex­ist­ing lo­gis­tics busi­ness and saw ma­jor syn­er­gies be­tween the two busi­nesses be­cause of the trans­port re­quire­ments of Or­min to trans­fer the fin­ished prod­uct to mar­kets ei­ther lo­cally or to ports. La­bat, whose stated strat­egy is to be­come a lead­ing trans­port and lo­gis­tics com­pany in sub-Sa­ha­ran Africa, said it would be the ded­i­cated lo­gis­tics con­trac­tor for all Or­min prod­ucts. The com­pany said it had also iden­ti­fied the ben­e­fi­ci­a­tion of ex­ist­ing mined re­sources as a ma­jor op­por­tu­nity and a mech­a­nism for com­mu­nity up­lift­ment, small busi­ness de­vel­op­ment and job cre­ation at com­mu­nity level. It saw Or­min as an ideal part­ner for such a ven­ture and had iden­ti­fied var­i­ous other above ground op­por­tu­ni­ties to ex­ploit to­gether. La­bat added that Or­min had se­cured rights to above ground tail­ings of var­i­ous min­er­als and cur­rently sup­plied chrome prod­uct to iden­ti­fied mar­kets, but planned to ex­pand the op­er­a­tions to other min­er­als this year. It said Or­min had ob­tained rights to an es­ti­mated 2 mil­lion tons of above ground min­er­als through rental and roy­alty agree­ments and si­mul­ta­ne­ously se­cured mar­kets for the prod­ucts both lo­cally and over­seas. “Or­min is now ready to com­mence op­er­a­tions on a full time ba­sis,” it said. - Roy Cokayne

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