Anglo American to demerge, list thermal coal biz

Anglo American Plc is progressing on its exit from its remaining thermal coal operations in South Africa, likely via a demerger, the company has said in its recently published annual report for 2020.

The company also plans to exit its one-third shareholding in the independently managed Cerrejón operation in Colombia at an appropriate time, it said.

In May 2020, Anglo American confirmed its plans to work towards an exit from the remaining thermal coal operations in South Africa, with a demerger being a likely preferred exit option, with a primary listing on the Johannesburg Stock Exchange for the demerged business.

“We are making good progress to prepare the operations as a stand-alone business. We will continue to consider other exit options as we engage with stakeholders as part of our commitment to a responsible transition,” the company said.

“On our planned exit from South African thermal coal operations, I’m pleased to report we’re making good progress with the preparation work on the demerger option certainly available to us probably during the course of this year. And if we do see a trade sale option emerge that we think has merit, we will still look at that, but certainly on the demerger option, we’re well advanced, and in a good place to continue the process and announce something during the course of this year. And on Cerrejón, we also intend to exit our one-third stake certainly within three years, but obviously we’ve got two partners that we have to work with to make sure that’s done the right way,” Mark Cutifani CEO, Anglo American told analysts post its 2020 annual results conference.

Thermal coal portfolio

The remaining South African coal portfolio is concentrated on export markets, having sold the majority of its domestic coal mines in 2015.