Global mining company Anglo American today (Monday) announced plans to sell off its Eskom-tied thermal coal operations in South Africa.
The New Vaal, New Denmark and Kriel collieries – as well as four closed collieries – will be sold to Seriti Resources Holdings, a historically disadvantaged South Africans (HDSAs) majority-owned company by the end of 2017.
“The sale 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,” said an Anglo American spokesperson.
Chief executive of Anglo American, Mark Cutifani, stated that the decision for the sale formed part of the company’s mission to reshape and upgrade its global portfolio as well as its “long-standing support” for development and sustainability in South Africa’s mining industry.
“Seriti is excited about the transaction which represents a significant step forward in our vision to become a black-controlled, broad-based South African mining champion, and a coal player of significant size and scale,” added Seriti chief executive, Mike Teke.
He commented that the transaction allowed Seriti to achieve its strategic objective of preserving and operating strategic energy assets for the benefit of South Africa and its people. “Our structure brings together an experienced team capable of operating and developing large-scale thermal coal assets and provides a unique mining opportunity for black women,” said Teke.
The sale will be subject to regulatory approvals as well as Eskom’s consent to the transfer of the coal supply agreements from Anglo American to Seriti.
Eskom spokesperson, Khulu Phasiwe, told FTW Online that at this stage they were engaging in talks with Anglo American to determine their plans for disposing of their assets, adding that as they had invested in these mines they did have a say in the proceedings and “do not want any surprises”.
However, he also gave his assurance that the volumes and quality of the coal provided to Eskom by the collieries being sold would not be affected.
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