Anglo American (AAUKF, $41.37) to spinoff thermal coal operations in South Africa

Mining company Anglo American  announced plans to spinoff its thermal coal operations in South Africa as it aims for a “responsible transition” away from the fossil fuel.

The company said it will spin off its South African thermal coal operations to a new holding company, Thungela Resources Limited, conditional on shareholder approval on May 5.  Thungela is a  South African producer and exporter of thermal coal.

Anglo American will inject into Thungela cash of $170 million along with contingent support until the end of 2022 if thermal coal prices fall below a certain level. Its marketing business will also support Thungela and its products for 3½ years.

Anglo American shareholders will own 100% of the issued share capital of Thungela, receiving one Thungela share for every 10 Anglo American shares they hold. The company said shareholders could then increase, decrease or maintain their interests in Thungela based on their investment criteria.

Thungela will then be listed on the Johannesburg Stock Exchange and the London Stock Exchange. 

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Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.