Anglo sells New Largo thermal coal project

Anglo American announced the sale of the New Largo thermal coal project and Old New Largo (a closed colliery in South Africa) to New Largo Coal.

New Largo will be sold by Anglo’s 73%-held subsidiary Inyosi Coal to New Largo, which is owned by Seriti Resources and Coalzar. The two companies are majority owned and controlled by historically disadvantaged South Africans, and the Industrial Development Corporation (IDC).

Coal
Image: credit: Pixabay

The consideration payable for New Largo is R850-million (about USD71-million) — and will be payable in cash upon closing of the transaction. “I am delighted to announce 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,” says Norman Mbazima, deputy chairman of Anglo American.

New Largo is l in South Africa and its principal asset is about a 585Mt coal resource, with the related mining right that is well-positioned to supply Eskom's new Kusile Power Station.

"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," adds Mbazima.

The transaction is subject to conditions precedent customary for a transaction of this nature, including regulatory approvals in South Africa. The transaction is expected to close in the second half of 2018.


 

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