NEWS
29/01/2018 10:09 SAST | Updated 29/01/2018 10:09 SAST

Anglo American Sells Eskom Coal Assets For R848 million

"The sale delivers on our long-standing strategy to exit our Eskom-tied coal assets."

Siphiwe Sibeko / Reuters

LONDON (Reuters) - Anglo American on Monday announced the sale of the New Largo thermal coal project in South Africa for approximately $71 million (R848 million) to a new majority black-owned-and-managed company.

Siphiwe Sibeko / Reuters
An Eskom logo is seen at the entrance of their head offices in Sunninghill, Sandton, February 24, 2016. South Africa's energy regulator Nersa said on Wednesday it had postponed a decision on tariffs charged by state-run power utility Eskom to March 1 from Feb 25 as it seeks further clarity on diesel costs. REUTERS/Siphiwe Sibeko

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.