Anglo faces platinum test in SA spinoff | Fin24
 
  • SAA

    Pravin Gordhan says while govt is committed to saving the airline, there's no room for more bailouts.

  • Andre de Ruyter

    Bondholders aren’t convinced that Eskom’s new chief executive officer is the best choice.

  • Illicit Tobacco Trade

    The SA Revenue Service says it is going to court to recover R200m in taxes in a decade-old case

Loading...

Anglo faces platinum test in SA spinoff

Dec 06 2016 06:39
Janice Kew, Kevin Crowley and Loni Prinsloo


Company Data

ANGLO AMERICAN PLC [JSE:AGL]

Last traded 382
Change -7
% Change -2
Cumulative volume 152001
Market cap 0

Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

ANGLO AMERICAN PLATINUM LIMITED [JSE:AMS]

Last traded 1223
Change -26
% Change -2
Cumulative volume 23608
Market cap 0

Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Chamber of Mines takes aim at government over Mining Charter

Amcu, Amplats agree on wage deal

Anglo boots diamond and iron-ore production

Anglo jumps above £10 as century-old miner back from brink

Anglo names new finance director

Anglo rejected India billionaire’s merger plan - claim

 

Johannesburg - Anglo American [JSE:AGL] is facing a showdown with its biggest investor, South Africa’s state-owned Public Investment Corporation (PIC), which wants the miner’s prized platinum assets included in any divestment of its local operations.

PIC, which owns about 14.5% of Anglo, is insisting platinum is included in the suite of coal and iron ore assets that the miner is considering spinning off, according to a person familiar with the fund manager’s thinking. That presents a major hurdle to Anglo chief executive officer Mark Cutifani, who says platinum is one of the company’s core commodities, along with copper and diamonds.

Anglo American Platinum [JSE:AMS] is the world’s biggest producer of the metal and 70% of global production comes from South Africa. The London-based Sunday Telegraph reported yesterday that Anglo had convinced the PIC to drop its platinum request, without saying where it got the information.

Anglo assets

Anglo favours a spinoff of its iron-ore and thermal-coal assets in South Africa, rather than selling them piecemeal, a person close to the company said on Monday, asking not to be identified. The miner still wants to generate cash from any divestment to pay down debt, another person close to the company said.

The PIC, Africa’s biggest fund manager, wants to create a locally owned mining giant to increase black ownership of companies and generate income for the pensions it oversees.

If Anglo went forward with a spinoff, the PIC would own about 30% of the company, a person familiar with the matter said in October.

“Our role is to make Anglo more South African-owned and controlled,” PIC CEO Dan Matjila said in an interview on October 10. A PIC spokesperson couldn’t immediately respond to a request for comment.

Anglo shares slipped 0.2% to 1 2 07 pence as of 11:56 in London. The stock has quadrupled this year.

“We continue to work through all the various options for divesting the thermal coal and Kumba iron ore assets in South Africa, which may include packaging them for sale to create a new South African mining company,” Anglo said in an e-mailed statement.

Read Fin24's top stories trending on Twitter:

anglo amercian  |  mining
NEXT ON FIN24X

 
 
 
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

What do you think about private healthcare in SA?

Previous results · Suggest a vote

Loading...