Anglo American plans to exit its South African thermal coal business

The miner is looking at a possible demerger as its preferred exit option, as well as a trade sale.

Anglo American has announced its plans to exit its South African thermal coal business within the next three years. 

The company said in a written response to shareholder questions that it’s working toward a possible demerger of the South African coal business as its preferred exit option. Anglo American added that it will also consider other options, like a trade sale.

“We believe that the long-term prospects of our thermal coal operations in South Africa may be best served under different ownership,” Anglo said in the comments. 

Anglo, which has already dramatically reduced the amount of thermal coal it mines in recent years, has two remaining businesses producing the fuel in South Africa and Colombia.