Seriti Resources Acquires Anglo American’s Thermal Coal Assets in South Africa
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Anglo American plc has sold its thermal coal operations in South Africa to Seriti Resources Holdings Proprietary Limited for 2.3bn rand.
The miner’s sale of the South African coal operations is part of its divestment plans in the country. The transaction will make Seriti the second largest provider of thermal coal to Eskom.
The coal operations include the New Vaal, New Denmark and Kriel collieries along with four closed collieries.
Seriti is majority owned by historically disadvantaged South Africans.
Anglo’s Chief Executive, Mark Cutifani, said: “We are pleased to have agreed the sale of our Eskom-tied domestic thermal coal operations in South Africa.This transaction forms part of our ongoing commitment to reshape and upgrade our global asset portfolio, recognizing appropriate value and further demonstrating Anglo American’s longstanding support for the development and sustainability of South Africa’s mining industry.”
Anglo expects the transaction will close by the end of the year, subject to regulatory approvals and consent from Eskom for the transfer of coal supply agreements.
Shore Capital said: “We are not surprised that Anglo is ‘pleased’ to have agreed this sale and have no doubt that it will be very much hoping that completion occurs ASAP, or certainly, as far as possible ahead of South Africa’s 2019 general elections.
“Thermal coal provision to Eskom has increasingly been becoming a politically-charged hot potato, a situation which we think could otherwise have intensified. We were amused by Anglo’s claim that the disposal demonstrates Anglo’s support for the development and sustainability of South Africa’s mining industry.”
Source: (April 10, 2017) Proactive Investors
About Anglo American
Anglo American is one of the world’s largest diversified mining groups with portfolio of mining assets and natural resources includes precious, base metals and bulk commodities in Africa, Europe, South and North America, Australia and Asia.
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