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ANGLO AMERICAN PLC - Anglo American completes sale of Eskom-tied thermal coal operations in South Africa

Release Date: 01/03/2018 12:30
Code(s): AGL     PDF:  
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Anglo American completes sale of Eskom-tied thermal coal operations in South Africa

Anglo American plc
Registered office: 20 Carlton House Terrace, London SW1Y 5AN
Registered number: 3564138 (incorporated in England and Wales)
Legal Entity Identifier: 549300S9XF92D1X8ME43
JSE Share Code: AGL
NSX Share Code: ANM


Anglo American completes sale of Eskom-tied thermal coal operations in South Africa

Anglo American plc ("Anglo American") confirms completion of the sale of its Eskom-tied
domestic thermal coal operations in South Africa (the "Operations") to Seriti (the "Transaction").
The consideration payable for the Operations as at 1 January 2017 is ZAR2.3 billion
(approximately US$164 million).

Mark Cutifani, Chief Executive of Anglo American, said: "We are pleased to have completed the
sale of our Eskom-tied domestic thermal coal operations in South Africa to Seriti. This transaction
continues the reshaping of our global asset portfolio based on value and the optimal deployment
of capital, while realising value for our shareholders and ensuring reliable supply of coal to

Norman Mbazima, Deputy Chairman of Anglo American South Africa, commented on the
Transaction: "We believe the conclusion of the sale to Seriti, a broad-based, majority black-
owned and controlled South African mining company, represents a major step change in
transformation in the coal (and broader mining) sector, reinforcing Anglo American’s longstanding
track record, and commitment to, economic empowerment and sustainable transformation."

The Operations consist of the New Vaal, New Denmark and Kriel collieries, as well as four closed

For further information, please contact:

Media                                                                                  Investors
UK                                                                                     UK
James Wyatt-Tilby                                                                      Paul Galloway                                          
Tel: +44 (0)20 7968 8759                                                               Tel: +44 (0)20 7968 8718

Marcelo Esquivel                                                                       Trevor Dyer                                           
Tel: +44 (0)20 7968 8891                                                               Tel: +44 (0)20 7968 8992

South Africa                                                                           Sheena Jethwa
Pranill Ramchander                                                                                                              Tel: +44 (0)20 7968 8680

Anglo American plc
20 Carlton House Terrace London SW1Y 5AN United Kingdom
Registered office as above. Incorporated in England and Wales under the Companies Act 1985.
Registered Number: 3564138 Legal Entity Identifier: 549300S9XF92D1X8ME43
Tel: +27 (0)11 638 2592

Ann Farndell
Tel: +27 (0)11 638 2786

Notes to editors:

Seriti Coal Proprietary Limited, the purchaser, is a wholly owned subsidiary of Seriti Resources
Holdings Proprietary Limited ("Seriti"). Seriti is a broad-based, majority HDSA-owned and
controlled South African mining company, established with the aim of preserving and operating
strategic energy assets for the benefit of South Africa and its people. Seriti is owned jointly by
four strategic "anchor" shareholders, namely Masimong Group Holdings Proprietary Limited
("Masimong"), Thebe Investment Corporation ("Thebe"), Zungu Investments Company
Proprietary Limited ("ZICO") and Community Investment Holdings Projects ("CIH Projects").
Seriti’s management team will be led by Mike Teke who has extensive mining experience through
the acquisition, operation and development of Optimum Coal Mines and Koornfontein Mines
which produced approximately 10Mtpa of saleable domestic and export thermal coal and the
development of other large scale thermal coal projects. Seriti intends to provide meaningful equity
participation for management, employees and communities in its structure.

Anglo American
Anglo American is a globally diversified mining business. Our portfolio of world-class competitive
mining operations and undeveloped resources provides the raw materials to meet the growing
consumer-driven demands of the world’s developed and maturing economies. Our people are at
the heart of our business. It is our people who use the latest technologies to find new resources,
plan and build our mines and who mine, process and move and market our products to our
customers around the world.

As a responsible miner – of diamonds (through De Beers), copper, platinum and other precious
metals, iron ore, coal and nickel – we are the custodians of what are precious natural resources.
We work together with our key partners and stakeholders to unlock the long-term value that those
resources represent for our shareholders and for the communities and countries in which we
operate – creating sustainable value and making a real difference.

1 March 2018

RAND MERCHANT BANK (A division of FirstRand Bank Limited)

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