(Alliance News) - Anglo American PLC on Monday said it has completed demerger of its thermal coal business in South Africa, allowing Thungela Resources Ltd to start trading on both the London and Johannesburg stock exchanges.
Thungela will trade on the London Main Market and have a primary listing in Johannesburg.
Thungela owns a 50% interest in Phola, which owns and operates the Phola coal processing plant in Mpumalanga, South Africa. Thungela also holds a 23% interest in the Richard Bay coal terminal, also in South Africa.
In addition, Thungela produces thermal coal from seven collieries in Mpumalanga, namely Goedehoop, Greenside, Isibonelo, Khwezela, Zibulo, Mafube and Rietvlei.
All of Thungela's shares initially will be held by Anglo American shareholders, who will receive one Thungela share for every ten Anglo shares held.
Anglo American had first announced the demerger in early April, as part of its "responsible transition" away from thermal coal.
"We expect our portfolio of assets to be cash generative throughout the life of our mines and well into the next decade, with the option for life extension opportunities. In addition to export markets, we produce thermal coal for domestic consumption in South Africa, which provides us with inherent operational flexibility in response to changes in demand and other external factors," said Thungela Chief Executive Officer July Ndlovu.
"Thungela starts its journey today as a high-quality independent business. We have every confidence that Thungela will be a responsible steward of what are valuable thermal coal resources in South Africa and will continue delivering value for all its stakeholders and for South Africa as a whole," said Anglo American CEO Mark Cutifani.
Shares in Anglo American were down 2.4% at 3,178.00 pence on Monday in London, while its Johannesburg shares were 2.7% lower at ZAR604.95.
Thungela's London shares were 126.22 pence, down 16% from their opening price of 150.00p. In Johannesburg, the stock was quoted at ZAR24.25, down 3.0% from the opening price of ZAR25.00.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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