Anglo American share price rises as it exits South African coal market

Miner Anglo American has exited the South African coal market with the sale of its New Largo asset.

Anglo sold the asset for 850m South African Rand (£57m) via its 73 per cent-held subsidiary Anglo American Inyosi Coal to New Largo Coal Proprietary Limited.

The buyer is owned by Seriti Resources Proprietary Limited and Coalzar Proprietary Limited, two companies majority owned and controlled by historically disadvantaged South Africans, and the Industrial Development Corporation.

“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,” said Norman Mbazima, deputy chairman of Anglo American South Africa.

“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.”

Anglo set out its plans to leave the coal market last year, instead switching focus to platinum, copper and diamonds.

Shares in Anglo American were up 1.1 per cent in early trading.