Sasol Is Said to Plan Sale of Its South Africa Coal Mining Unit
By Loni Prinsloo and Paul Burkhardt | Bloomberg
Sasol Ltd. is planning to sell its South African coal-mining business, according to people familiar with the matter.
The company will begin a formal sales process in the coming weeks, said the people, who asked not to be identified as the information isn’t public yet. The mining business had turnover of 20 billion rand ($1.4 billion) in the 2018 financial year, according to the company’s financial report, mostly from internal sales to Sasol’s other operations.
The company is the world’s biggest manufacturer of fuel from coal, an energy-intensive process. Sasol’s coal mines produce about 40 million tons of coal a year, almost entirely for use in its own operations, according to its website.
The company would plan to sign a coal-purchase agreement with whoever buys the asset, said one of the people.
Sasol announced a long-term review process in November 2017 that would involve disposing of some assets at prices that ensure value for the company, it said in an emailed response to questions, while declining to comment directly on a possible mine sale…Full Story