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Anglo American sells new Largo coal project in South Africa

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Staff Writer | January 29, 2018
Anglo American coal
Acquisition   Historically disadvantaged South Africans

Anglo American said its subsidiary Anglo American Iyosi Coal has sold the New Largo thermal coal project and Old New Largo closed colliery in South Africa to New Largo Coal Proprietary.

The miner said that it has agreed a ZAR850.0 million, about $71 million, sale price with New Largo Coal, which is owned by Serifi Resources Proprietary Ltd and Coalzar Proprietary Ltd and the Industrial Development Corp SOC.

Serifi and Coalzar are majority owned and controlled by "historically disadvantaged South Africans", Anglo American said.

New Largo's principle asset is the 585.0 million tonne coal resource, which is well-positioned to supply Eskom's new Kusile power station, the company noted.

"I am delighted to announce the sale of New Largo to a new majority black-owned-and-managed company. Together, Seriti, Coalzar and the IDC have excellent operating and management capabilities to develop and operate New Largo optimally and sustainably into the future.

"The sale delivers on our long-standing strategy to exit our Eskom-tied coal assets and marks another Anglo American-led step-change in the sustainable transformation of the South African mining industry, supporting both Eskom and the country's transformation objectives," Anglo American Deputy Chairman Norman Mbazima said.

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