South32, which is investing 15 million R273.4m into new mining areas for its South African manganese operations has received approval for the disposal of its Illawarra Metallurgical Coal business in Australia.
The Illawarra coal mine is being disposed of for 2.5 billion to entity owned by Golden Energy and Resources GEAR and M Resources, established participants in the Australian metallurgical coal industry.
For South32, the disposal of Illawarra will significantly reduce the companys capital intensity, with Illawarra Metallurgical Coal currently comprising 35 of its capital expenditure.
On Friday, South32 said it had now received approval for the disposal.
Shares in South32 fell 3.3 on the JSE on Friday, closing the days trade session at R46.79 per share while its stock was down by 2.2 in the past 30 days.
