South32 to reduce interest in South African coal
The Australian mining company, South32, has stated that it plans to reduce interest in its South Africa Energy Coal (SAEC) business.
Announced on 27 November, the company plans to run its business as a stand-alone unit, with aims to widen ownership with the potential outcome of listing it on the Johannesburg Stock Exchange.
“Establishing South Africa Energy Coal as a stand-alone business will enable us to improve the operation’s competitiveness and ensure its ongoing sustainability,” commented Graham Kerr, Chief Executive of South32.
In June this year, the South African Government modified the Mining Charter legislating black ownership of mining firms be raised from 26% to 30%.
“This will present opportunities for Broad-Based Black Economic Empowerment entities, employees and communities,” stated the Perth-based company.
South32 has also revealed their AU$411mn (US$305mn) investment to extend the life of its Klipspruit operation in South Africa by approximately 20 years.
The company’s shares closed down 2.63% at AU$3.33 (US$2.53) in Sydeny, with prices lower in Johannesburg at -2.78% to ZAR3,457 (US$251.10).
The new rules instated by the South African Government also require companies to pay 1% of turnover to their black empowerment partners.