Anglo-American will transfer its South African thermal coal assets to a new company, with the aim of getting out of the polluting resource in the face of increasing pressure from investors.
The split company, Thungela, will be listed on the Johannesburg and London stock exchanges, Anglo-American announced Thursday. Thungela produced 16.5 million tonnes of coal last year and has assets worth $ 1.3 billion.
“As the world moves towards a low-carbon economy, we must continue to act responsibly,” said Mark Cutifani, Managing Director of Anglo-American. “Our proposal to split off what are valuable natural resources for South Africa allows us to do just that.”
Mining companies have come under pressure to disengage from coal mines. Rio Tinto sold its last coal mine in 2018 and BHP is also looking to exit its thermal coal business.
Anglo-American investors will each receive a share of Thungela for every 10 Anglo-American stocks they hold, the company said.