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

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.

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“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…