Anglo-American will move its South African thermal coal resources to a new company in a move to get out of polluting resources amid growing pressure from investors.
The Anglo-American said on Thursday that the sunken company would list Thungela Johannesburg and the London Stock Exchange. Thungela produced 1.5.5 million tons of coal last year and has assets of 1.3 billion.
“As the world transforms into a low-carbon economy, we must continue to work responsibly,” said Mark Kutifani, chief executive of Anglo-America. “Our proposed immersion in what is a valuable natural resource for South Africa allows us to do just that.”
The mining companies were under pressure to separate from the coal mines. Rio Tinto sold its last coal mine in 2018 and BHPO is looking to get out of its thermal coal business.
Anglo-American investors will receive a share of Thungella for each Anglo-American share, the agency said.