Anglo-American is to switch its South African thermal coal assets into a brand new firm, in a transfer to exit the polluting useful resource amid rising investor stress.
The demerged firm, Thungela, will record on the Johannesburg and London inventory exchanges, Anglo-American mentioned on Thursday. Thungela produced 16.5m tonnes of coal final yr and has assets value $1.3bn.
“As the world transitions towards a low-carbon economy, we must continue to act responsibly,” mentioned Mark Cutifani, Anglo-American’s chief govt. “Our proposed demerger of what are precious natural resources for South Africa allows us to do exactly that.”
Mining firms have been below stress to divest from coal mines. Rio Tinto offered its final coal mine in 2018 and BHP can also be wanting to exit its thermal coal enterprise.
Anglo-American buyers will every obtain one share in Thungela for each 10 Anglo-American shares they maintain, the corporate mentioned.