By Piers De Wilde
August 2, 2018 - Anglo-South African miner, Anglo American has completed the sale of its share in the New Largo thermal coal project in South Africa, it said late Wednesday.
A subsidiary of the diversified miner, Anglo American Inyosi Coal, sold its 73% in the New Largo coal project which included the New Largo thermal coal project and Old New Largo closed colliery, to New Largo Coal Proprietary.
New Largo Coal Proprietary is owned by Seriti and Coalzar, both of which are majority owned by historically disadvantaged South Africans, and also owned by the Industrial Development Corporation SOC.
The ZAR850 million ($65 million) deal was announced on January 29, the statement said.
"This sale marks the completion of our long-standing strategy to exit our Eskom-tied coal assets and is yet another milestone in the sustainable transformation of the South African mining industry," Norman Mbazima, deputy chairman of Anglo American South Africa, said in a statement.
The project's principle asset is the 585 million mt reserve of coal, which the company said is well position to supply Eskom's new Kusile Power Station.
Anglo American said July 19 it's Q2 export thermal coal production fell 1% on the year to 7.2 million mt. The company announced in July it revised down its 2018 thermal coal production projection to 28-30 million mt from the previous projection of 29-31 million mt.
Anglo's H1 thermal coal revenues totalled $1.79 billion, up 15% on the year, the company said last Thursday.
S&P Global Platts assessed the FOB Richards Bay 5,500 kcal/kg NAR, 7-45 day price at $85.05/mt Wednesday.
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