Burgh Group Holdings (BGH) is a company that holds several investments in mining companies, together with a 100% equity interest in the Group’s yellow fleet division.
The shareholdings held by BGH in the respective underlying subsidiaries vary according to the nature of the operations conducted by the underlying company, coupled with any regulatory requirements imposed by various stakeholders and/or departments. Given that BGH, through its subsidiary Iyanga Mining (Pty) Ltd, supplies coal to Eskom under short term supply agreements, this entity for example is 51% empowered, and 49% held by BGH.
BGH itself focuses on trading coal into the export market, and facilitating the mining of special projects, where such mining operations are conducted by Burgh Plant Hire (“BPH”, typically based on royalty styled arrangements where the mining right itself is never transferred, but rather the coal is taken off on a royalty basis over the life of mine.
Currently, BGH is conducting two such operations and is in the process of embarking on a further two.
• Eyethu coal is a 74% held subsidiary of BGH and holds the mining rights over the most productive mining operations within the Group.
• Iyanga Mining is a 49% held associate of BGH and holds the mining right over the Klipfontein and Welgelegen reserves within the Group’s stable – with Klipfontein forming the basis of the Eskom supply agreements. Iyanga Mining has been in talks with Eskom over the signing of a long term Coal Supply Agreement, the signing of which is imminent.
In addition to the above, the Group has interests in numerous project development companies that hold prospecting or mining rights at various stages of progression. The management team of BGH, together with our in-house technical experts, drive these projects up the value chain to ensure sustainable organic growth within the Group’s own structures. BGH has an experienced in house marketing team that looks after the export flows facilitated by the Group. This team has international experience and exposure such that the best markets for the Group’s export products are always identified and supplied into.