Anglo says SA reorganisation adds sale flexibility | Fin24
 
  • Renewables

    The govt is assessing a R160bn plan to establish the world’s largest green-energy financing initiative.

  • Biggest Jump

    Oil prices have spiked after drone attacks in Saudi Arabia disrupted global supply.

  • Fin24’s newsletter

    Sign up to receive Fin24's top news in your inbox every morning.

Loading...

Anglo says SA reorganisation adds sale flexibility

Mar 21 2017 18:11
Loni Prinsloo, Bloomberg

Johannesburg - Anglo American Plc said its decision to split some South African assets into a different subsidiary gives it the “flexibility” to dispose of its iron ore and export thermal coal assets should it decide to do so.

The split, which was partly announced in February without reasons being given, means that stakes in Anglo American Platinum Ltd. and De Beers are now held in a unit called Anglo American South African Investments, while another subsidiary, Anglo South Africa Capital Proprietary, keeps the controlling stake in Kumba Iron Ore Ltd. and the export coal mines.

READ: Anglo confronts messy divorce in SA birthplace 

“The transfer should not be construed as a signal of intent,” Anglo American South Africa head of corporate communications Pranill Ramchander said by email on Monday.

In February last year, as Anglo announced a dramatic plan to sell more than half its mines, the company said it was looking to exit Kumba as part of a wider retreat from iron ore and coal. 

READ: Anglo American swings back to profit 

Since then, the company curtailed its divestment plan after a rally in the commodities it was seeking to exit helped remove the pressure on its balance sheet. Anglo is “happy to stick with” its iron-ore and export-coal mines in South Africa, Chief Executive Officer Mark Cutifani told Bloomberg Television on February 21.

“The retention of these assets remains a viable position given our recent operational and other improvements and our focus on continuing improvements as we go forward,” Ramchander said.

Anglo owns 77.7% of Anglo Platinum and about 70% of Kumba. The company last month reported profit doubled on cost cuts and rising metal prices.

Read Fin24's top stories trending on Twitter:

anglo american  |  mining  |  assets
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's your view on deep sea mining?

Previous results · Suggest a vote

Loading...