Black South African companies push for control of coal industry
London, Jan. 29, 2018 (AltAfrika)–Anglo American Plc agreed to sell its New Largo coal project in South Africa to a group of black-controlled companies, bringing it closer to an exit from operations designed to supply coal to the country’s power plants.
Anglo will sell New Largo to Seriti Resources Pty Ltd., Coalzar Pty Ltd. and South Africa’s Industrial Development Corp. for 850 million rand ($71 million). The company said in a statement on Monday
State owned power utility, Eskom Holdings SOC ltd., South Africa’s biggest coal buyer and major supplier the nation’s power has said it wants suppliers to be black controlled as south Africa pushes companies to boost black involvement in the economy to make up for discrimination during the dark days of apartheid
New Largo reportedly has about 585 million tonnes of coal resources located in South Africa’s eastern Mpumalanga province .
The sale of the project will help complete Anglo’s exit from operations that sell coal locally. The miner announced a sweeping asset sale programme in February 2016 following a plunge in commodity prices to focus on diamond, platinum and copper.
“The sale delivers on our long-standing strategy to exit our Eskom-tied coal assets” said Norman Mbazima, deputy chairman of Anglo American South Africa.
Seriti, which agreed last year to buy thermal coal mines in South Africa from Anglo, is led by Mike Teke, a former president of South African Chambers of Mines.