Anglo American to Sell South African Coal Mines to Seriti – by Paul Burkhardt and Loni Prinsloo (Bloomberg News – April 10, 2017)

Anglo American Plc agreed to sell a group of South African coal mines to black-controlled Seriti Resources Holdings Ltd. for about 2.3 billion rand ($166 million) as it focuses on other commodities.

Seriti, which is led by South African Chamber of Mines President Mike Teke, will buy three thermal coal operations that supply state-owned power utility Eskom Holdings SOC Ltd., as well as four closed collieries, Anglo said in a statement Monday.

The sale, which is expected to close by the end of the year, will make Seriti the second-biggest provider of energy coal to Eskom, supplying almost a quarter of the utility’s current annual requirements.

Anglo announced a sweeping asset-sale program in February 2016 following a plunge in commodity prices, and outlined plans to focus on diamonds, platinum and copper and reduce debt accumulated during years of expansion. It’s since scaled back some divestment plans after prices rebounded.

“This transaction forms part of our ongoing commitment to reshape and upgrade our global asset portfolio, recognizing appropriate value and further demonstrating Anglo American’s longstanding support for the development and sustainability of South Africa’s mining industry,” Anglo CEO Mark Cutifani said in the statement.

For the rest of this article, click here: