JOHANNESBURG - Anglo American plc on Monday announced the sale of the New Largo thermal coal project and Old New Largo closed colliery in South Africa to New Largo Coal, a consortium owned by is owned by Seriti Resources and Coalzar, for R850 million cash, or approximately U.S.$71 million.
Seriti and Coalzar are two companies majority owned and controlled by historically disadvantaged South Africans and the Industrial Development Corporation (IDC).
New Largo is located in Mpumalanga province and its principal asset is the approximately 585 million tonnes coal resource, with the related mining right that is well-positioned to supply Eskom's new Kusile Power Station. New Largo thermal coal project was 73 percent owned by Anglo American subsidiary, Inyosi Coal.
Deputy chairman of Anglo American South Africa, Norman Mbazima, said he was delighted by the sale of New Largo to a new majority black-owned-and-managed company.
"Together, Seriti, Coalzar and the IDC have excellent operating and management capabilities to develop and operate New Largo optimally and sustainably into the future," Mbazima said.
"The sale delivers on our long-standing strategy to exit our Eskom-tied coal assets and marks another Anglo American led step-change in the sustainable transformation of the South African mining industry, supporting both Eskom and the country’s transformation objectives."
The transaction, which is expected to close in the second half of 2018, is subject to conditions precedent customary for a transaction of this nature, including regulatory approvals in South Africa.
- African News Agency (ANA)