JOHANNESBURG - Anglo American have completed sale of Eskom-tied thermal coal operations in South Africa.
The power utility confirmed the completion of the sale to Seriti. The deal consideration payable for operations as at 1 january 2017 is R2.3bn.
Anglo American plc announced the sale earlier this year in January, 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.
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.
- BUSINESS REPORT ONLINE