UK-listed miner Anglo American has announced the sale of its New Largo thermal coal project, thereby completing its exit from the South African domestic coal market.
Anglo is selling the 585 million tonne New Largo project to a consortium led by Seriti Holdings in a $71m deal.
Th miner has been focusing its efforts on selling South African coal assets that supply utility company Eskom in part due to new ownership rules in the country.
“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,” said Norman Mbazima, deputy chairman of Anglo American South Africa.
Anglo America shares have rallied following the election of Cyril Ramaphosa as leader of South Africa’s ruling African National Congress party in December.
The stock was up 1.4% in London trading on Monday as at 1136 GMT, bringing the rise in the shares since early December to 30%.