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ANGLO AMERICAN PLC - Anglo American completes sale of New Largo thermal coal project in South Africa

Release Date: 01/08/2018 13:00
Code(s): AGL     PDF:  
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Anglo American completes sale of New Largo thermal coal project in South Africa

Anglo American plc (the “Company”)
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 New Largo thermal coal project in South Africa

Anglo American plc (“Anglo American”) announces completion of the sale, by its 73%-held
subsidiary Anglo American Inyosi Coal (Proprietary) Limited, of the New Largo thermal coal
project and Old New Largo closed colliery in South Africa (together, “New Largo”) to New Largo
Coal Proprietary Limited, which is owned by Seriti Resources Proprietary Limited (“Seriti”) and
Coalzar Proprietary Limited (“Coalzar”), two companies majority owned and controlled by
historically disadvantaged South Africans (“HDSAs”), and the Industrial Development
Corporation SOC Limited (the “IDC”).

As announced on 29 January 2018, the cash consideration payable for New Largo is ZAR850
million (approximately US$65 million).

Norman Mbazima, Deputy Chairman of Anglo American South Africa, said: "I am delighted to
announce the completion of the sale of New Largo to a majority black-owned-and-managed
company. As we said upon announcing the sale in January, Seriti, Coalzar and the IDC together
have excellent operating and management capabilities to develop and operate New Largo
optimally and sustainably into the future. This sale marks the completion of our long-standing
strategy to exit our Eskom-tied coal assets and is yet another milestone in the sustainable
transformation of the South African mining industry.”

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                                                    Robert Greenberg                        
 Tel: +44 (0)20 7968 8891                                            Tel: +44 (0)20 7968 2124

 South Africa                                                        Sheena Jethwa
 Pranill Ramchander                                                                        Tel: +44 (0)20 7968 8680
 Tel: +27 (0)11 638 2592

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

The Company has a primary listing on the Main Market of the London Stock Exchange and
secondary listings on the Johannesburg Stock Exchange, the Botswana Stock Exchange, the
Namibia Stock Exchange and the SIX Swiss Exchange.

RAND MERCHANT BANK (A division of FirstRand Bank Limited)

1 August 2018

Notes to editors:
New Largo
New Largo is located in South Africa and its principal asset is the approximately 585Mt Coal
Resource, with the related Mining Right, that is well-positioned to supply Eskom’s new Kusile
Power Station. For further information on the Coal Resource please refer to the Anglo American
Ore Reserves and Mineral Resources Report 2017.

New Largo Coal Proprietary Limited
New Largo Coal Proprietary Limited is a newly-formed entity owned by Seriti, Coalzar and the
IDC to acquire and develop New Largo. The company intends to provide meaningful equity
participation for management, employees and communities in its structure.

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, Thebe Investment Corporation, Zungu
Investments Company Proprietary Limited and Community Investment Holdings Projects. Seriti’s
management team is 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 acquired the Eskom-tied domestic
thermal coal operations in South Africa from Anglo American in March 2018.

Coalzar is a broad-based, majority HDSA-owned South African company representing the
interests of its shareholders who are focused on coal mining in the country. Coalzar is owned
jointly by four shareholders, namely Attwood LM Investments Proprietary Limited, Elwood OM
Investments Proprietary Limited, Voranex Proprietary Limited and Karongi Resources Proprietary
Limited. Coalzar’s management team includes Pius Mokgokong and Lefa Mbethe, who have
extensive coal mining experience having been involved in various coal operations in South Africa
over the past 15 years including, through Liketh Investments Proprietary Limited, being involved
in the operating of pit 5 at the Kleinkopje coal operations and having delivered over 20Mt of coal
since 2003 to the Tutuka, Kriel, Matla and Khutala power stations.

IDC is a developmental funding institution, wholly-owned by the South African Government,
established in 1940 by an Act of Parliament (IDC Act, No 22 of 1940) to promote economic growth
and industrial development in South Africa and other parts of Africa. The IDC has significant
South African mining exposure in the form of listed and unlisted investments.

Anglo American
Anglo American is a global diversified mining business and our products are the essential
ingredients in almost every aspect of modern life. Our portfolio of world-class competitive mining
operations and undeveloped resources provides the metals and minerals to meet the growing
consumer-driven demands of the world’s developed and maturing economies. With our people
at the heart of our business, we use innovative practices and the latest technologies to discover
new resources and mine, process, move and market our products to our customers around the

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 sustainable value that
those resources represent for our shareholders, the communities and countries in which we
operate and for society at large. Anglo American is re-imagining mining to improve people’s lives.

Legal Entity Identifier: 549300S9XF92D1X8ME43

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