Anglo American offloads Eskom-linked coal operations for R2.3 billion
Anglo American has announced the sale of its Eskom-tied thermal coal operations to Seriti Resources, a company majority owned by historically disadvantaged South Africans.
The sale will see Anglo net R2.3 billion for the Eskom-linked domestic thermal coal operations which consist of the New Vaal, New Denmark and Kriel collieries, along with four closed collieries.
The transaction will result in Seriti becoming the second largest provider of thermal coal to Eskom, supplying almost a quarter of Eskom’s current annual coal requirements.
Anglo American, 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.”
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