Optimum Coal (OPT), the South African coal mining and exploration group, on Friday acknowledged that it has “received unsolicited, non-binding expressions of interest from third parties to acquire a controlling interest in Optimum”.

“Shareholders are advised that there is currently no certainty that Optimum will receive a firm intention to make an offer from any party,” the company said in a statement to the JSE.

Media speculation on Thursday pointed to Glencore's black economic empowerment partner Shanduka Coal as one of the interested parties.

London business newspaper CityAM reported that the commodities trader has set its sights on buying South Africa's sixth-largest coal producer and is preparing to place a formal offer.

“Optimum's shareholders have confirmed that they received a formal offer from Glencore with the support of South African partner Cyril Ramaphosa, whose unlisted Shanduka Resources owns 30 per cent of Shanduka Coal, a venture with Glencore,” the report stated.

Optimum Coal on Thursday reported full year headline earnings of 203.82 cents - a massive improvement on last year's 28.92 cents - with profit more than doubling to 459.6 million rand in the year to end June 2011 from 229.7 million rand a year ago.

The company produced 13.6 million tons of saleable coal during the year, up from the 10.8 million tons of saleable coal produced last year.

The bulk of the company's production is exported. Export revenue made up 4.5 billion rand of the group's total income with inland revenue at just 85.1 million rand and revenue from electricity utility Eskom at 679.1 million rand.

Speaking at Glencore's half year results, also released on Thursday, Glencore CEO Ivan Glasenberg said given the turmoil in the markets, it was “an opportunistic time” to look at buying resource companies.

Source: Business Report