The Eskom-tied domestic thermal coal operations consist of the New Vaal, New Denmark and Kriel collieries, as well as four closed collieries.
The transaction will result in Seriti becoming the second largest provider of thermal coal to Eskom, supplying almost a quarter of Eskom’s current annual coal requirements.
Seriti is majority owned by historically disadvantaged South Africans and led by a management team with extensive experience of operating and developing large coal mines in South Africa.
Anglo American CEO Mark Cutifani said the transaction formed “part of our ongoing commitment to reshape and upgrade our global asset portfolio, recognising appropriate value and further demonstrating Anglo American's longstanding support for the development and sustainability of South Africa's mining industry”.
Under the terms of the transaction, the consideration payable will be adjusted for cash flows generated by the operations between January 1 2017 and the date on which the transaction is completed in order to determine the final payment to be made by Seriti upon completion.
Seriti CEO Mike Teke said the transaction allowed Seriti to achieve its strategic objective of preserving and operating strategic energy assets for the benefit of South Africa.
“Our structure brings together an experienced team capable of operating and developing large scale thermal coal assets and provides a unique mining opportunity for black women,” he said.
“The team looks forward to managing and growing the operations going forward, with a focus on ensuring their ongoing sustainability, given their strategic importance.”
