South32 CEO Graham Kerr
Diversified mining company South32 has announced the $1.65-billion sale of its Illawarra assets, in Australia, marking its exit from coal and aligning with a strategy that emphasised ventures in copper and zinc.
The ASX-, LSE- and JSE-listed miner sold Illawarra to Golden Energy and Resources (GEAR) and M Resources for cash.
GEAR is an investment vehicle that is focused on resources in Asia Pacific. Its current major investments include a 59% interest in Australian miner Stanmore Resources and a 50% interest in Queensland operator Ravenswood Gold.
M Resources specialises in the trading of various metallurgical coal products for steel manufacturing.
South32 CEO Graham Kerr commented that GEAR and M Resources were established participants in the Australian metallurgical coal industry and that they were well positioned to continue the mine’s contribution to the local steel industry and the Illawarra and Macarthur regions.