Commodities Buzz: Anglo American Completes Sale Of New Largo Thermal Coal Project In South Africa

Anglo American plc announces completion of the sale, by its 73%-held subsidiary Anglo American Inyosi Coal (Proprietary) Limited, of the New Largo thermal coal project and Old New Largo closed colliery in South Africa (together, n++New Largon++) to New Largo Coal Proprietary Limited, which is owned by Seriti Resources Proprietary Limited and Coalzar Proprietary Limited, two companies majority owned and controlled by historically disadvantaged South Africans, and the Industrial Development Corporation SOC Limited. As announced on 29 January 2018, the cash consideration payable for New Largo is ZAR850 million (approximately US$ 65 million).

Norman Mbazima, Deputy Chairman of Anglo American South Africa, said: I am delighted to announce the completion of the sale of New Largo to a majority black-owned-and-managed company. As we said upon announcing the sale in January, Seriti, Coalzar and the IDC together have excellent operating and management capabilities to develop and operate New Largo optimally and sustainably into the future. This sale marks the completion of our long-standing strategy to exit our Eskom-tied coal assets and is yet another milestone in the sustainable transformation of the South African mining industry.n++