Anglo American plc announces the sale, by its 73%-held subsidiary Anglo American Inyosi Coal (Proprietary) Limited, of the New Largo thermal coal project and Old New Largo closed colliery in South Africa (together, “New Largo”) to New Largo Coal Proprietary Limited, which is owned by Seriti Resources Proprietary Limited and Coalzar Proprietary Limited, two companies majority owned and controlled by historically disadvantaged South Africans (HDSAs) and the Industrial
Development Corporation SOC Limited (IDC).
The consideration payable for New Largo is ZAR850 million (approximately US$71 million). The
consideration will be payable in cash by the Purchaser upon closing of the Transaction.
New Largo is located in South Africa and its principal asset is the approximately 585Mt Coal
Resource, with the related Mining Right, that is well-positioned to supply Eskom’s new Kusile
Power Station. For further information on the Coal Resource please refer to the Anglo American
Ore Reserves and Mineral Resources Report 2016.
“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,” says Norman Mbazima, Anglo American South Africa Deputy Chairman.
The Transaction is subject to conditions precedent customary for a transaction of this nature,
including regulatory approvals in South Africa.