Johannesburg – Anglo American Plc will separate its South African coal mines into a new business this year, as the company accelerates its response to investor pressure over the most-polluting fuel.
Anglo has been plotting an exit from thermal coal for over a year and has constantly said separating its South African business was the most likely outcome. The company will still own a coal mine in Colombia that it’s also planning to sell and coking coal mines in Australia, used to make steel rather than burned for power.
The new business, called Thungela Resources Ltd, is set to be listed in Johannesburg and London in June, said the mining company in a statement on Thursday. Investors will receive one Thungela share for every ten Anglo American shares that they hold. Anglo executive July Ndlovu has been named chief executive officer.
Anglo traded at 2.2% higher at 8:05am in London.
Global miners have been looking to exit thermal coal as more investors say they don’t want exposure to the fuel. Anglo has already dramatically reduced its production in recent years, cutting output by more than half.
However, CEO Mark Cutifani has previously acknowledged that the company probably missed the best opportunity to get the highest price for the assets, instead, saying the focus was on handing over the mines in a responsible way.
