Anglo-American is to switch its South African thermal coal property into a brand new firm, in a transfer to exit the polluting useful resource amid rising investor strain.
The demerged firm, Thungela, will checklist on the Johannesburg and London inventory exchanges, Anglo-American mentioned on Thursday. Thungela produced 16.5m tonnes of coal final 12 months and has property value $1.3bn.
“Because the world transitions in direction of a low-carbon economic system, we should proceed to behave responsibly,” mentioned Mark Cutifani, Anglo-American’s chief govt. “Our proposed demerger of what are treasured pure sources for South Africa permits us to do precisely that.”
Mining corporations have been beneath strain to divest from coal mines. Rio Tinto offered its final coal mine in 2018 and BHP can be trying 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.