South Africa: Anglo Completes Demerger of South African Thermal Coal Assets - Thungela Debuts On JSE

analysis

Anglo American has completed the demerger of its thermal coal assets in South Africa, giving rise to Thungela Resources, which saw its shares sink on its Monday debut on the JSE.

Coal assets are being treated like lumps of coal in mining portfolios. Coal's links to the climate crisis and pollution have made shareholders and the wider public leery of fossil fuel.

Raising finance for new coal projects is increasingly difficult and huge markets like the European Union are planning to impose carbon emissions charges on imported goods.

Anglo American is committed to making all its operations carbon neutral by 2040. This makes coal an awkward fit in its portfolio, and shareholders, including the pension board for the Church of England (COE), have been pressing it to exit such assets. And so, as the company announced in April, it has spun off its thermal coal operations in South Africa into a new listed entity, Thungela Resources.

Don't want to see ads?

"Thungela starts its journey today as a high quality independent business. We have every confidence that Thungela will be a responsible steward of what are valuable thermal coal resources in South Africa and will continue delivering value for all...

More From: Daily Maverick

Don't Miss

AllAfrica publishes around 900 reports a day from more than 130 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.

X