Anglo to sell its coal ops for $166 million
Anglo American has announced that it will sell its Eskom-linked thermal coal operations in South Africa for $166 million. According to Reuters, Anglo will sell the assets (New Vaal, New Denmark and Kriel collieries) to Seriti Resources Holdings. The mines, along with four closed collieries, have a supply agreement with Eskom.
Mark Cutifani (pictured) Anglo CEO, said in a statement:
"This transaction forms part of our ongoing commitment to reshape and upgrade our global asset portfolio."
Suffering the effects of a drop in commodity prices in 2015, Anglo decided to overhaul its organisation in a bid to strip down its portfolio and focus on just three commodities: diamonds, platinum and copper. This sale forms a part of that plan.
The sale is subject to regulatory approval and consent from Eskom for the transfer of the coal supply agreement. Anglo has said it expects the deal to close by year end.