Apr 28, 2017 Last Updated 1:50 PM, Apr 28, 2017

Anglo American parts with South African thermal coal operations

coal 2ABNABN - Anglo American (LSE:AAL) has announced the sale of its domestic thermal coal operations in South Africa to Seriti Resources Holdings.

The thermal coal operations, which are tied to domestic utility company Eskom, consist of the New Vaal, New Denmark and Kriel collieries, along with four closed collieries.

Seriti will pay around US$164 million in the transaction, which will make the company the second largest provider of thermal coal to Eskom, supplying a quarter of its current annual coal requirements.

Anglo's chief executive, Mark Cutifani, said: "This transaction forms part of our ongoing commitment to reshape and upgrade our global asset portfolio, recognising appropriate value and further demonstrating Anglo American's longstanding support for the development and sustainability of South Africa's mining industry."

Seriti’s chief executive Mike Teke said the deal was a significant step in the firm becoming a black-owned national mining champion.

“The transaction allows Seriti to achieve its strategic objective of preserving and operating strategic energy assets for the benefit of South Africa and its people,” said Teke.

“Our structure brings together an experienced team capable of operating and developing large scale thermal coal assets and provides a unique mining opportunity for black women.”

@ABNetworkOnline

 

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