As a response to pressure from investors concerned over pollution and burning of fossil fuels, Anglo American has taken the decision to separate its South African coal mines into a new business this year. This decision comes after a year of planning an exit from thermal coal.
The new business, called Thungela Resources Ltd., will be listed on both the Johannesburg and London stock exchanges by June. Investors will recieve one Thungela share for every ten Anglo American shares they currently own.
With an increasing number of investors insisting that they no longer want any exposure to the burning of coal, Anglo has already decreased its coal production by half in recent years and promised to sell its coal mine in Colombia. The group will retain its coal mines in Australia, as these facilities are used for steel production rather than burning coal for power.
According to CEO Mark Cutifani, Anglo American decided to forego searching for the best price for their mines in favor of handing them over in a responsible way.
“We did have some bids but in the end, we felt the best option was to de-merger and make sure the business was set up with no debt, give it a running start,” he confirmed. He went on to explain that this was the best move in order to maintain the company’s promises to stakeholders.
