South32 now expects S.African thermal coal exit after March quarter

Alma Metals

29/03/2021 04:04

March 29 (Reuters) - Australia's South32 Ltd  S32.AX  said
on Monday sale process of its South African thermal coal
business is now expected to be completed after the March
quarter, amid contract negotiations between the miner and
electricity generator Eskom. 
    South32 announced the sale of the business to South African
coal firm Seriti Resources Holdings in November 2019 in a deal
that is expected to improve its balance sheet as investor
pressure and climate change concerns prompt businesses to limit
their exposure to fossil fuels.
    The deal has taken longer to close than anticipated, as the
Perth-headquartered firm had initially forecast the process to
end in 9 to 12 months. 
    South Africa's antitrust tribunal in December approved the
sale, clearing a key hurdle for sealing the deal.  urn:newsml:reuters.com:*:nL4N2J323L
    However, terms are yet to be agreed upon for a supply deal
between South32 and South African electricity generator Eskom,
the largest consumer of thermal coal in the country.
    Work is progressing between the miner, Seriti and Eskom to
finalise arrangements that will allow for the satisfaction of
the final material conditions to the deal, South32 said in its
statement.  urn:newsml:reuters.com:*:nASX8hMydL


 (Reporting by Shruti Sonal in Bengaluru, Editing by Sherry
Jacob-Phillips)
 ((Shruti.Sonal@thomsonreuters.com; Twitter: @shrutisonal26;))