Anglo American Creates BEE Coal Giant

08.02.07

Johannesburg - Global resources group Anglo American on Thursday said as part of its commitment to transformation it has created a R7 billion black empowered coal company.

Anglo Coal, a wholly owned division of Anglo American plc, said it created Anglo Inyosi Coal to house key current and future domestic and export focused coal operations.

Inyosi will acquire 27% of Anglo Inyosi Coal, creating a company valued at R7 billion and incorporating several key Anglo Coal assets, namely Kriel Colliery an existing mine, and Elders, Zondagsfontein, New Largo and Heidelberg projects, Anglo said in a statement.

Inyosi is led by the Lithemba Consortium and Pamodzi Coal and has a beneficiary base that will benefit more than 27,000 individuals, the majority of whom are female Historically Disadvantaged South Africans (HDSAs).

WDB Investment Holdings will also be a shareholder and Inyosi will create an independent broad-based Community Trust that will benefit HDSA communities around Anglo Inyosi Coal's operations and marginalised and impoverished communities.

These broad-based groups will receive an annual allocation of up to R5 million to enable the immediate initiation of socio economic community-based projects.

"Anglo American is very pleased to unveil another initiative in its strategy to deliver effective and broad-based empowerment across all our South African operations as we continue with significant investments in the future of this country. We are creating a leading South African coal company with a diverse group of committed and effective empowerment partners," said Philip Baum, acting chief executive of Anglo American South Africa.

"We are witnessing the genesis of a leading coal producer, with significant HDSA ownership and management, including women, which is well placed to benefit from the increasing demand for coal from its portfolio of productive and greenfield assets. Together with our partners we will enhance transformation, not only through our operations but also in fulfilling our promises to the communities in which we operate, bringing true upliftment to South Africa," said Ben Magara, Chief Executive of Anglo Coal South Africa.

"Lithemba is led by women, controlled by women and managed by women. Our value add and participation at all levels will be delivered by women. One of our key objectives is to ensure the empowerment of women within the resources and energy sectors. Based on this, it is our intention to work together with Anglo Coal, Pamodzi Coal and WDB in developing a sustainable transaction.

Lithemba possesses a broad range of business and corporate intellect, industry knowledge, and expertise as well as a network of key stakeholders in the energy and mining sector. Lithemba is ready and able to partner with Pamodzi Coal, WDB and Anglo Coal in this exciting, women led empowerment initiative," noted Yoliswa Balfour, non executive Chairperson of Lithemba Consortium and joint lead partner of the broad-based consortium acquiring a 27% stake in Anglo Inyosi Coal.

Commenting from Australia, John Wallington, Chief Executive of Anglo Coal Global, said: "I am delighted with today's announcement, as it is a key component of Anglo Coal's growth strategy. The development of these assets will underpin our objective of building world class coal assets and reinforces Anglo American's strategy of embracing transformation in South Africa."

Anglo Inyosi Coal will have a significant domestic market and a sizeable 3.5mtpa export component. An application for export entitlement through Richards Bay Coal Terminal (RBCT) has already been submitted. - I-Net Bridge