Anglo American sells Eskom-tied coal assets for $71 million

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LONDON, January 29 (Reuters) – Anglo American on Monday
announced the sale of the New Largo thermal coal project in
South Africa for approximately $71 million to a new majority
black-owned-and-managed company.

New Largo’s main asset is an 585 million tonne coal resource
and related mining rights, which is positioned to supply Eskom’s
new Kusile Power Station.

“The sale delivers on our long-standing strategy to exit our
Eskom-tied coal assets,” Norman Mbazima, deputy chairman of
Anglo American South Africa, said in a statement.

New Largo Coal Proprietary Limited is owned by Seriti
Resources Proprietary Limited and Coalzar Proprietary Limited,
two companies majority owned and controlled by historically
disadvantaged South Africans.