07 Jun - 8 min read

Anglo American completes demerger of Thungela thermal coal business

Anglo American completes demerger of Thungela thermal coal business

Anglo American plc (the “Company”)
Registered office: 20 Carlton House Terrace, London SW1Y 5AN
Registered number: 3564138 (incorporated in England and Wales)
Legal Entity Identifier: 549300S9XF92D1X8ME43
JSE Share Code: AGL
NSX Share Code: ANM

News Release

7 June 2021

Anglo American completes demerger of Thungela thermal coal business

Anglo American plc (“Anglo American”) announces the completion of the demerger of its thermal
coal operations in South Africa. Thungela Resources Limited (“Thungela”) will start trading today
through a primary listing on the Johannesburg Stock Exchange under the abbreviated name
“Thungela” (Alpha code "TGA”), and a standard listing on the London Stock Exchange (ticker
symbol “TGA”). As a leading South African thermal coal exporter, Thungela offers investors
access to a high quality thermal coal business with low cash cost and high-margin assets and a
strong balance sheet, underpinned by a robust ESG framework.

The admission to trading of Thungela on the Johannesburg and London stock exchanges follows
the completion of the demerger of Anglo American’s thermal coal operations in South Africa that
was announced on 8 April 2021 and was approved by shareholders on 5 May 2021. The scheme
of arrangement to implement the demerger was sanctioned by the UK High Court of Justice on
26 May 2021. The completion of the demerger took effect at 8.00pm (UK time) on 4 June 2021.

Mark Cutifani, Chief Executive of Anglo American said: “We have consistently believed in a
responsible transition from thermal coal, being a transition that seeks to balance the needs and
expectations of all stakeholders. The demerger of Thungela lives up to that promise by bringing
our employees, shareholders, host communities, host government and our customers along with

“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 its stakeholders and for South
Africa as a whole.”

July Ndlovu, Chief Executive of Thungela, said: “We are excited to be listing Thungela today. The
company plays an important role in providing affordable energy to our customers in the
developing world, as well as in South Africa. Our business consists of well-established, well-
managed assets that produce high-quality thermal coal, with access to a world-class export
infrastructure. Thungela has an enviable cash cost position and is poised to deliver attractive
returns to shareholders.”

With the completion of the demerger and at the point of listing of Thungela, 100% of the issued
share capital of Thungela is held by Anglo American’s shareholders who each received one
Thungela share for every ten Anglo American shares that they hold. Each Anglo American
shareholder also retains their existing shareholding in Anglo American. Thungela holds 90% of
the thermal coal operations in South Africa with the remaining 10% held collectively by an
employee partnership plan and a community partnership plan.

For further information, please contact:

Media                                                Investors
UK                                                   UK
James Wyatt-Tilby                                    Paul Galloway
james.wyatt-tilby@angloamerican.com                  paul.galloway@angloamerican.com
Tel: +44 (0)20 7968 8759                             Tel: +44 (0)20 7968 8718

Marcelo Esquivel                                     Emma Waterworth
marcelo.esquivel@angloamerican.com                   emma.waterworth@angloamerican.com
Tel: +44 (0)20 7968 8891                             Tel: +44 (0)20 7968 8574

Katie Ryall                                          Michelle Jarman
katie.ryall@angloamerican.com                        michelle.jarman@angloamerican.com
Tel: +44 (0)20 7968 8935                             Tel: +44 (0)20 7968 1494

South Africa
Nevashnee Naicker
Tel: +27 (0)71 164 5719

Sibusiso Tshabalala
Tel: +27 (0)11 638 2175

Nomonde Ndwalaza
Tel: +27 (0) 11 638 0228

Notes to editors:

Anglo American is a leading global mining company and our products are the essential
ingredients in almost every aspect of modern life. Our portfolio of world-class competitive
operations, development projects and undeveloped resources, provides many of the metals and
minerals that enable a cleaner, greener, more sustainable world and that meet the fast growing
consumer-driven demands of developed and maturing economies. With our people at the heart
of our business, we use innovative practices and the latest technologies to mine, process, move
and market our products to our customers – and to discover new resources – safely and

As a responsible producer of diamonds (through De Beers), copper, platinum group metals, the
steelmaking ingredients of iron ore and metallurgical coal, and nickel – with crop nutrients in
development and thermal coal operations planned for divestment – we are committed to being
carbon neutral across our operations by 2040. We work together with our business partners and
diverse stakeholders to unlock sustainable value from precious natural resources for the benefit
of the communities and countries in which we operate, for society as a whole, and for our
shareholders. Anglo American is re-imagining mining to improve people’s lives.

Thungela Resources, which means “to ignite” in isiZulu, is a leading South African thermal coal
business, focused exclusively on thermal coal production. It is one of the largest pure-play
producers and exporters of thermal coal in South Africa based on aggregate coal reserves and
marketable coal production. Thungela focuses on exporting its thermal coal portfolio mainly to
the Indian and other developing countries in South Asia.

Thungela’s operations are among the highest quality thermal coal mines in South Africa by
calorific value. Thungela also holds a 50% interest in Phola, which owns and operates the Phola
Coal Processing Plant, and a 23.22% indirect interest in Richards Bay Coal Terminal (RBCT).
RBCT is one of the world’s leading coal export terminals, with an advanced 24-hour operation
and a design capacity of 91 Mtpa.

Thungela is committed to operating in a sustainable way to ignite value for a shared future, to the
benefit of the communities in which it operates, its employees, shareholders and society as a

For more information please visit:

Important Information
This announcement does not constitute an offer of securities for sale or a solicitation of an offer to purchase
securities in any jurisdiction nor shall it (or any part of it) or the fact of its distribution, form the basis of, or
be relied on in connection with, any contract therefor.

The securities to which these materials relate have not been, and will not be, registered under the US
Securities Act of 1933 (the "US Securities Act"), or under the securities laws of any state or other
jurisdiction of the United States. Accordingly, they may not be offered, sold, resold, delivered, distributed or
otherwise transferred, directly or indirectly, in or into the United States absent registration under the US
Securities Act or an exemption therefrom.

Forward-looking statements:
This announcement includes forward-looking statements. All statements other than statements of historical
facts included in this announcement, including, without limitation, those regarding Anglo American's
financial position, business, acquisition and divestment strategy, dividend policy, plans and objectives of
management for future operations (including development plans and objectives relating to Anglo American's
products, production forecasts and Ore Reserves and Mineral Resource estimates) and environmental,
social and corporate governance goals and aspirations, are forward-looking statements. By their nature,
such forward-looking statements involve known and unknown risks, uncertainties and other factors which
may cause the actual results, performance or achievements of Anglo American, or industry results, to be
materially different from any future results, performance or achievements expressed or implied by such
forward-looking statements.

Such forward-looking statements are based on numerous assumptions regarding Anglo American's present
and future business strategies and the environment in which Anglo American will operate in the future.
Important factors that could cause Anglo American's actual results, performance or achievements to differ
materially from those in the forward-looking statements include, among others, levels of actual production
during any period, levels of global demand and commodity market prices, mineral resource exploration and
development capabilities, recovery rates and other operational capabilities, safety, health or environmental
incidents, the effects of global pandemics and outbreaks of infectious diseases, the outcome of litigation or
regulatory proceedings, the availability of mining and processing equipment, the ability to produce and
transport products profitably, the availability of transportation infrastructure, the impact of foreign currency
exchange rates on market prices and operating costs, the availability of sufficient credit, the effects of
inflation, political uncertainty and economic conditions in relevant areas of the world, the actions of
competitors, activities by courts, regulators and governmental authorities such as in relation to permitting or
forcing closure of mines and ceasing of operations or maintenance of Anglo American's assets and changes
in taxation or safety, health, environmental or other types of regulation in the countries where Anglo
American operates, conflicts over land and resource ownership rights and such other risk factors identified
in Anglo American's most recent Annual Report. Forward-looking statements should, therefore, be
construed in light of such risk factors and undue reliance should not be placed on forward-looking

These forward-looking statements speak only as of the date of this announcement. Anglo American
expressly disclaims any obligation or undertaking (except as required by applicable law, the City Code on
Takeovers and Mergers, the UK Listing Rules, the Disclosure and Transparency Rules of the Financial
Conduct Authority, the Listings Requirements of the securities exchange of the JSE Limited in South Africa,
the SIX Swiss Exchange, the Botswana Stock Exchange and the Namibian Stock Exchange and any other
applicable regulations) to release publicly any updates or revisions to any forward-looking statement
contained herein to reflect any change in Anglo American's expectations with regard thereto or any change
in events, conditions or circumstances on which any such statement is based. Nothing in this announcement
should be interpreted to mean that future earnings per share of Anglo American will necessarily match or
exceed its historical published earnings per share.

Certain statistical and other information about Anglo American included in this announcement is sourced
from publicly available third-party sources. As such, it has not been independently verified and presents the
views of those third parties, though these may not necessarily correspond to the views held by Anglo
American and Anglo American expressly disclaims any responsibility for, or liability in respect of, such

Legal Entity Identifier: 549300S9XF92D1X8ME43

The Company has a primary listing on the Main Market of the London Stock Exchange and
secondary listings on the Johannesburg Stock Exchange, the Botswana Stock Exchange, the
Namibia Stock Exchange and the SIX Swiss Exchange.

RAND MERCHANT BANK (A division of FirstRand Bank Limited)

Date: 07-06-2021 09:00:00
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