[miningmx.com] — ANGLO American on Tuesday announced the final
stage of its $1.4bn divestment from steelmaker Scaw Metals, saying it has sold the
South African subsidiary of the business to a consortium of partners which includes
the Industrial Development Corporation and Shanduka Resources.
The transaction for the SA business totals R3.4bn ($440m), and follows the sale of
Scaw’s international businesses, Moly-Cop and AltaSteel, for $932m to Onesteel in
December 2010.
“In aggregate, the total consideration achieved from the sale of all Scaw’s businesses
has amounted to $1.4bn on a debt and cash-free basis,’ read a company statement.
“The sale of Scaw brings the total announced proceeds from our divestments of non-
core assets to $3.7bn since 2010,’ said Anglo CEO, Cynthia Carroll. “I am particularly
pleased that the manner in which we conducted this divestment reinforces our
ongoing commitment to South Africa.
“This acquisition will contribute positively to the South African government’s industrial
development objectives by enabling the IDC to play a meaningful role in the
strategically important steel industry.’
Said Geoffrey Qhena, CEO of the IDC: “The IDC endeavours to promote the
establishment of domestic-based manufacturing industries, supporting the
infrastructure expansion programmes of both Eskom and Transnet.
“In this regard, Scaw South Africa is well positioned to take advantage of long-term
growth trends in the mining industry, as well as in the railway and power generation
sectors, and is aligned to our primary objective of creating balanced, sustainable
economic growth in South Africa and across the African continent.’
The consortium’s other partners are Izingwe Holdings and the Southern Palace Group
of Companies.
Anglo American expects the transaction to be completed before year-end.
