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 stress.
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 yr and has property value $1.3bn.
“Because the world transitions in the direction of a low-carbon economic system, we should proceed to behave responsibly,” mentioned Mark Cutifani, Anglo-American’s chief government. “Our proposed demerger of what are valuable pure assets for South Africa permits us to do precisely that.”
Mining firms have been beneath stress to divest from coal mines. Rio Tinto bought its final coal mine in 2018 and BHP can also be seeking 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.