Anglo American is to spin out its South African thermal coal operations into a new company that will test the appetite of London investors to own a miner dedicated to the polluting fuel.
The FTSE 100 mining group said that the demerged company would be called Thungela Resources and was expected to start trading in June via a primary listing on the Johannesburg Stock Exchange and a standard listing in London.
Anglo American’s shareholders will receive one Thungela share for every ten Anglo shares they own.
Anglo American mines a range of other commodities including copper, coking coal, iron ore and diamonds and reported net profits of $2.1 billion last year.
It has been under increasing pressure from investors to quit producing thermal coal,