Australia’s South32 in talks to exit thermal coal business in South Africa

first_imgAustralia’s South32 in talks to exit thermal coal business in South Africa FacebookTwitterLinkedInEmailPrint分享Reuters:Australian miner South32 Ltd reported a bigger-than-expected 25% drop in annual profit as the trade war between China and the United States hurt aluminum prices, sending its shares lower by as much as 5.8% on Thursday.South32 also said it was in talks to sell its South Africa thermal coal business to Johannesburg-based Seriti Resources, the latest company to get out of energy coal at a time when investor pressure and climate change concerns are prompting businesses to limit their exposure to fossil fuels.The miner, which had flagged last year that it was looking to sell its energy coal business in South Africa, did not disclose a deal value, but said it consists of a modest upfront cash payment and a deferred price mechanism.The planned sale follows Rio Tinto’s exit from coal in 2018 and comes days after the head of BHP Group, the world’s biggest miner, said the company had put its thermal coal operations under review.Norway’s $1 trillion sovereign wealth fund said in June it may have to sell its stake in South32 to meet tighter ethical investing rules adopted by the country’s parliament.More: Profit slumps at Australia’s South32 as trade war hits aluminum priceslast_img read more