“We are delighted to announce the sale of New Largo to a new majority black-owned and managed company,” said Norman Mbazima, deputy chairman of Anglo American South Africa. “Together, Seriti, Coalzar, and the IDC have excellent operating and management capabilities to develop and operate New Largo optimally and sustainably into the future.”
Mbazima said the sale was part of the company’s strategy of exiting from its Eskom-tied coal assets.
Located in South Africa, New Largo’s principal asset is the 585-million-metric-ton coal resource, with the related mining right, that is well-positioned to supply Eskom’s new Kusile power station.
The transaction is subject to customary conditions, including regulatory approvals in South Africa, and it is expected to close in the second half of 2018.