Anglo pockets R850million (P663m)
Botswana Stock Exchange (BSE) listed mining giant, Anglo American plc has completed the sale of the New Largo thermal coal project and Old New Largo closed colliery in South Africa.
The sale was conducted through Anglo American’s 73 percent held subsidiary, Anglo American Inyosi Coal (Proprietary) Limited. It was sold to New Largo Coal Proprietary Limited, which is owned by Seriti Resources Proprietary Limited and Coalzar Proprietary Limited.
The two companies are majority owned and controlled by historically disadvantaged South Africans, and the Industrial Development Corporation SOC Limited . Announced on 29 January 2018, the cash consideration payable for New Largo is R850 million, approximately US$65 million or P663 million.
Norman Mbazima, Deputy Chairman of Anglo American South Africa, said he was delighted to announce the completion of the sale of New Largo to a majority black-owned-and-managed company.
“As we said upon announcing the sale in January, Seriti, Coalzar and the IDC together have excellent operating and management capabilities to develop and operate New Largo optimally and sustainably into the future. This sale marks the completion of our long-standing strategy to exit our Eskom-tied coal assets and is yet another milestone in the sustainable transformation of the South African mining industry,” he said.
New Largo is located in South Africa and its principal asset is the approximately 585 Metric tonnes (Mt) Coal Resource, with the related Mining Right, that is well-positioned to supply Eskom’s new Kusile Power Station.