Anglo American Sells New Largo thermal coal project in South Africa
Source - SMW
Anglo American announced the ZAR850m sale of the New Largo thermal coal project and old New Largo closed colliery in South Africa, to New Largo coal proprietary Ltd.
The sale, by Anglo American's 73%-held subsidiary Anglo American Inyosi Coal, was expected to conclude in the second half of 2018.
Upon closing the transaction, New Largo Coal Proprietary Limited is expected to pay ZAR850mm roughly US$71 million, for the New Largo thermal coal project, subject to regulatory approvals in South Africa.
Norman Mbazima, Deputy Chairman of Anglo American South Africa, said: '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.'
'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.'