South32 spins off its major South African coal operations to hit JSE
Date: 2017-11-27   Author: Ojaswita Kutepatil  Category: #news

South32 spins off its major South African coal operations to hit JSE

In a bid to ensure its ongoing sustainability and improve its operational competitiveness, South32, an Australian mining and metal company has recently unveiled its plans to separate its South African coal operations. Apparently, this move is set to establish SAEC (South Africa Energy Coal) as a stand-alone business from the fiscal year 2018 – a strategy that could observe a rise in local ownership of the business.  

Sources revealed that South32’s move to spin out and restructure its South African coal operations would create more opportunities for Board-Based Black Economic Empowerment entities, employees, and communities to own a share of the business. By broadening its ownership, the company plans to register its name on the Johannesburg Stock Exchange. For the record, the Broad-Based Black Economic Empowerment consortium owns around 8% of SAEC.

In a company statement, South32 said that its SAEC business desired ongoing investments that would aid the company to easily meet and sustain its production and supply activities. According to reports, the company further plans to commence a process to widen its ownership, once SAEC is established as a stand-alone business.

Experts predict that this change would allow the diversified miner to further streamline and simplify the way it manages its global portfolio.

Reportedly, South32, the company which spun out of the mining giant BHP in 2015, also revealed its plan to invest USD 301 million investment in one of its South African coal operations – Klipspruit, to extend the life of the project for another 20 years. Analysts predict this project extension to ensure the employment of 740 people and create around 4000 jobs during the construction phase. The production from this site is expected to commence from the fiscal year 2019.  

In the recent stock exchange reports, shares of South32 climbed by 16.4% since the beginning of the year. In November, the company exhibited an all-time high record with share prices closing in at USD 3.61.



About Author


Ojaswita Kutepatil

Ojaswita Kutepatil

Ojaswita Kutepatil, a mechanical engineer by qualification, worked as a BDE and Technical Engineer before switching her profession to content writing. Currently, she works at AlgosOnline. as an Content writer, where she pens down write-ups pertaining to the market res...

Read More

More from Ojaswita


Post Recommendents

Bank of Beijing & ING announce joint venture to set up digital bank
Author: Paroma Bhattacharya

Bank of Beijing will reportedly hold 49% of the stake and ING will hold remaining 51% in the new digital bank

Bank of Beijing has announced that it plans to estab...


Jitjatjo closes new $11M funding round led by Morningside Technology
Author: Pankaj Singh

Reports confirm that Morningside Technology Ventures, a Hong Kong investment firm, has led a $11 million Series A funding round for Jitjatjo, which is a mobile staffing marketplace for hospitality industry in New York....


Grab to charge fee for ride cancellation in Malaysia from March 25
Author: Pankaj Singh

Reports confirm that from March 25 this year, Grab Malaysia would begin charging its passengers a fee for canceling rides and also those who are late to their hired cab, after a specific permitted time.