COMPANY COMMENT: Anglo passes baton to well-positioned Seriti
Anglo does not favour minority stakes and the disagreement with Eskom set it on a path to dispose of the low-margin collieries supplying the power utility
Anglo American has started the deep-tissue restructuring of its South African asset portfolio, agreeing to a R2.3bn sale of its Eskom-linked collieries to newly formed Seriti Resources. Anglo has overseen the sale of the large Rustenburg platinum mining complex to Sibanye Gold and the smaller Union platinum mine and the closure of the Thabazimbi iron-ore mine and sale to ArcelorMittal SA.But the thermal-coal sale, which could mark the complete exit of Anglo American from South African coal-production, is a hefty move, triggered in part by the impasse between Anglo and Eskom over the ownership structure of the New Largo project, with the parastatal demanding 51% black ownership. Anglo does not favour minority stakes and the disagreement set it on a path to dispose of the low-margin collieries supplying Eskom. Anglo still has its export-focused thermal collieries in SA. At one point — when commodity prices were low in 2015 — Anglo was keen to sell, but as coal prices recovered, it has...
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