Anglo sells its New Largo coal project

Anglo American will be selling its New Largo coal project to a group of black-controlled companies.

Anglo American has agreed to sell its South Africa-based New Largo coal project to Seriti Resources, Coalzar, and the Industrial Development Corporation (IDC) for R850 million.

The company has said the sale will bring it closer to an exit from operations designed to supply coal to the country’s power plants, with Norman Mbazima, deputy chairman of the South African operation, saying the sale delivers on Anglo’s long-standing strategy to exit its Eskom-tied coal assets.

The deal is subject to various conditions, including regulatory approvals in South Africa, and is expected to wrap up during the second half of this year.