Mining giant Anglo American Plc has agreed to sell South African coal assets worth seven billion rand (975 million dollars) to a new black-owned company in line with government policy promoting blacks in big business.
“This is a key component of Anglo Coal’s strategy,” Philip Baum, acting chief executive of Anglo American South Africa Ltd said in a statement Thursday.
“The development of these assets will underpin our objective of building world class coal assets and reinforce Anglo American’s strategy of embracing transformation in South Africa.”
The newly-formed company Inyosi will hold 27 percent of Anglo Inyosi Coal.
South Africa is pushing the Black Economic Empowerment (BEE) policy to redress economic inequalities dating to the apartheid era when business was overwhelmingly dominated by white South Africans.
The move by Anglo comes on the heels of follows similar ones by Lonmin, the world’s third-biggest producer of platinum, and by Gold Fields Ltd, the world’s fifth-biggest gold producer, to sell stakes to black investors.
“Together with our new partners we will enhance transformation not only through our operations but also fulfilling our promise to the communities in which we operate, bringing true upliftment to South Africa,” said Ben Magara, Chief Executive of Anglo Coal South Africa.
Source: AFp via news.yahoo.com