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Anglo American completes exit from S.African coal miner Thungela -Breaking


© Reuters. FILEPHOTO: Anglo American logo appears on a jacket worn by an Anglo American employee at Los Bronces coppermine, just outside Santiago, Chile. March 14, 2019. REUTERS/Rodrigo Garrido

HARARE (Reuters), a global mining company Anglo American (LON. ) Plc has announced that it will sell its shareholding in Thungela Resources on Friday, closing its South African coal exit.

Anglo American was pressured by investors to get out of coal business worldwide and hived off all its South African mines to Thungela. The initial public offering (IPO) took place in June and most shares were distributed to shareholders, with the exception of 8%.

Investors had discounted Thungela’s chances of success amid the global pressure on nations and businesses to move away from coal.

However, rising coal prices have turned the tables on Thungela. The company’s shares rose sixfold over the past nine months.

Anglo reported that it had sold its Thungela shares for 154 rand each, generating gross proceeds of 1.67 trillion rand ($115million).

Thungela’s shares fell 8.85% to 160.68 rand by 0741 GMT Friday. In June, the company was listed at 25 rand per share.

Thungela posted its 6.9 billion rand first-ever full-year profit on March 22. This was due to higher prices for coal.

($1 = 14.5279 rand)

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