Anglo American sheds Eskom thermal unit
JOHANNESBURG, (CAJ News) – ANGLO American has announced the sale of its Eskom-tied domestic thermal coal operations in South Africa to a wholly owned subsidiary of Seriti Resources Holdings Proprietary Limited.
The deal is worth R2,3 billion (about US$164 million).
The buyer is a company majority owned by historically disadvantaged South Africans and led by a management team with extensive experience of operating and developing large coal mines in South Africa.
The transaction will result in Seriti becoming the second largest provider of thermal coal to Eskom, supplying almost a quarter of Eskom’s current annual coal requirements.
Norman Mbazima, Deputy Chairman of Anglo American South Africa, says: “We believe that the sale to Seriti supports transformation objectives for the industry as well as the country, while ensuring a sustainable, reliable and cost efficient supply of coal to Eskom.”
Mike Teke, Chief Executive of Seriti, says the deal a significant step-forward in the vision to become a black-controlled, broad based South African mining champion, and a coal player of significant size and scale.
“The transaction allows Seriti to achieve its strategic objective of preserving and operating strategic energy assets for the benefit of South Africa and its people,” says Teke.
The transaction is subject to conditions precedent that are customary for a transaction of this nature, including regulatory approvals in South Africa, as well as Eskom’s consent for the transfer to Seriti of the coal supply agreements which govern the operations’ supply of coal to Eskom.
The transaction is expected to close by the end of 2017.
– CAJ News
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