Johannesburg - The two main bidders for Anglo American’s
South African coal mines plan to list their companies if they are successful in
buying the operations, according to three people familiar with the plans.
Phembani Group, founded by MTN Group Chairman
Phuthuma Nhleko, and Masimong Minerals are seen as the leading bidders to
purchase the mines that produce coal for the local market, with offers ranging
from R2 billion to R3 billion, said two of the people. The black-owned
companies both plan to sell shares if they win the assets, said the people, who
asked not to be identified because the discussions are private.
South Africa is pushing companies to boost black
involvement in the economy to make up for discrimination during apartheid.
State-owned power producer Eskom Holdings, which burns coal for about 90
percent of its generation and is the country’s largest buyer of the fuel, says
it wants suppliers to be black-controlled.
Read also: Anglo shortlists coal bidders
Anglo decided in February 2016 to unload more assets
after commodity prices plunged and as it sought to pay debt built up during
years of expansion. It’s since scaled back those plans as prices rebounded and
will probably keep its coal-exporting mines in the continent’s most-industrialised
economy.
The New Vaal, Kriel and New Denmark mines mainly
sell coal to Eskom and together account for about half of Anglo’s South African
coal production. A final decision on the sale will be made before the end
of the month, one person said.
Coal investments
Phembani would add the mines to its other coal
investments that include stakes in Exxaro Resources and South32, said one of
the people. Masimong Minerals is chaired by Mike Teke, the president of South
Africa’s Chamber of Mines. Phembani and Masimong Minerals declined to comment
when contacted by email.
“Anglo American continues to progress the sale of its
Eskom-tied, domestic thermal-coal operations,” Anglo spokesman Pranill
Ramchander said by phone, declining to comment further on the bidders.
Anglo rose 1.8 percent to 1 201.5 pence by 8:23 a.m. in
London, the highest in a week.
Phembani’s Shanduka Coal unit owns 50.01 percent of
Izimbiwa Coal, with Glencore holding the rest, according to Phembani’s website.