UK-listed mining giant Anglo American has unveiled plans to demerge its thermal coal operations in South Africa, subject to the approval of its shareholders on 5 May.
Mark Cutifani, Chief Executive of Anglo American, said the announcement was in line with the company’s long-term strategy to transition away from thermal coal.
“As the world transitions towards a low carbon economy, we must continue to act responsibly – bringing our employees, shareholders, host communities, host governments and customers along with us,” he said.
“Our proposed demerger of what are precious natural resources for South Africa, allows us to do exactly that.
According to Mr Cutifani, the separation will be implemented through the transfer of the company’s thermal coal operations in South Africa to a new holding company, Thungela Resources Limited, the demerger of the Thungela shares to Anglo American shareholders and the primary listing of Thungela’s shares on the Johannesburg Stock Exchange and standard listing on the London Stock Exchange.
“We are confident that Thungela will be a responsible steward of our thermal coal assets in South Africa, benefiting from an experienced and diverse management team and board,” he continued.
“While representing just a small proportion of Anglo American today, we are laying the foundation for South Africa’s leading coal business, setting it up for success to deliver value for all its stakeholders.
“Looking forward, we believe the prospects for long-term value delivery are greatest as two standalone businesses, each with their own strategy and access to capital.”
