Anglo American confirms completion of the sale of its Eskom-tied domestic thermal coal operations in South Africa (the Operations) to Seriti (the Transaction).
Seriti, the purchaser, is a wholly owned subsidiary of Seriti Resources Holdings.
Seriti is a broad-based, majority HDSA-owned and controlled South African mining company, established with the aim of preserving and operating strategic energy assets for the benefit of South Africa and its people.
The consideration payable for the Operations as at 1 January 2017 is ZAR2.3 billion (approximately US$164 million).
“We are pleased to have completed the sale of our Eskom-tied domestic thermal coal operations in South Africa to Seriti," comments Anglo American chief executive Mark Cutifani.
"This transaction continues the reshaping of our global asset portfolio based on value and the optimal deployment of capital, while realising value for our shareholders and ensuring reliable supply of coal to Eskom," he continues.
“We believe the conclusion of the sale to Seriti, a broad-based, majority black-owned and controlled South African mining company, represents a major step change in transformation in the coal (and broader mining) sector," notes Anglo American deputy chairman Norman Mbazima.
He adds that it reinforces Anglo American’s longstanding track record and commitment to, economic empowerment and sustainable transformation.”
The Operations consist of the New Vaal, New Denmark and Kriel collieries, as well as four closed collieries.