Anglo American has completed the sale, by its 73%-held subsidiary Anglo American Inyosi Coal, of the New Largo thermal coal project and Old New Largo closed colliery in South Africa.
New Largo Coal Proprietary, the purchaser, is owned by Seriti Resources and Coalzar, two companies which are majority owned and controlled by historically disadvantaged South Africans (HDSAs), and the Industrial Development Corporation (IDC).
The cash consideration payable for New Largo is R850 million (approximately US$65 million).
Norman Mbazima, Deputy Chairman of Anglo American South Africa, says:
"I am 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.”