Miners were quick out of the blocks this week, driven by a rise in global metals prices and Anglo American pulling out of the South African coal market.
Miners were quick out of the blocks this week, driven by a rise in global metals prices and Anglo American pulling out of the South African coal market.
Anglo has agreed to sell its New Largo coal project for around £57 million to two companies majority owned and controlled by historically disadvantaged South Africans.
The miner set out its plans to leave the coal market last year following a plunge in the commodity price, and instead focus on mining platinum, copper and diamonds. Paul Gait, analyst at Bernstein, said: “Investors want to see a more balance profile to the company rather than it being overweight in terms of the SA exposure and this helps with that portfolio weighting.
Nevertheless, Anglo remains heavily invested in South Africa and still owns a large iron ore business, a platinum producer, De Beers’ diamond mines and a manganese business. Shares in Anglo American have risen sharply since December on hopes that new President Cyril Ramaphosa will create a more business-friendly environment in South Africa and this session shares in Anglo were up 27p at 1,761.6p.
Article Source: eveningstandard.co.uk