Anglo American has announced that all the resolutions surrounding its coal demerger were duly passed at a general and court meeting of shareholders held on 5 May 2021.
Speaking at the announcement of the deal in in early April 2021 Anglo American CE, Mark Cutifani, stated:
“Anglo American has been pursuing a responsible transition away from thermal coal for a number of years now. As the world transitions towards a low carbon economy, we must continue to act responsibly – bringing our employees, shareholders, host communities, host governments and customers along with us.
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“Our demerger of what are precious natural resources for South Africa, allows us to do exactly that. We are confident that Thungela will be a responsible steward of our thermal coal assets in South Africa, benefiting from an experienced and diverse management team and board.
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“While representing just a small proportion of Anglo American, we are laying the foundation for South Africa’s leading coal business, setting it up for success to deliver value for all its stakeholders.
“Looking forward, we believe the prospects for long-term value delivery are greatest as two standalone businesses, each with their own strategy and access to capital.”
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July Ndlovu, CEO of Thungela, added:
“Thungela is a leading South African producer of high quality, low-cost export thermal coal, well positioned to benefit from improved market conditions, and providing a reliable and affordable energy source to our customers mainly in developing economies.
“We have significantly repositioned and upgraded our portfolio in recent years into a highly competitive producer of export product, with established access to world-class export infrastructure.
“As an independent business we will continue to contribute significantly to our host communities and South Africa’s development objectives.
“As part of our commitment to creating an enduring positive legacy, we are establishing an employee partnership plan and a community partnership plan, with each holding a 5% interest in the Thungela thermal coal operations in South Africa, thereby enabling employees and communities to share in the financial value that we generate.
“Guided by the high standards set by Anglo American, Thungela is committed to operating sustainably – continuing to drive safety, health, environmental, governance and social programmes for the benefit of our employees, host communities and shareholders.
“The demerger of Thungela and our listing on the JSE represents yet another major milestone for Anglo American’s long-running contribution towards transforming South Africa’s mining industry.”
Anglo American is committed to setting up Thungela as a sustainable standalone business, including by providing an initial cash injection of ZAR2.5 billion and further contingent capital support until the end of 2022 in the event of thermal coal prices in South African rand falling below a certain threshold.