Anglo American (LON: AAL) has successfully spun off South African coal mining business Thungela Resources Ltd (LON:TGA) and the shares have started trading on the standard list in London and the Johannesburg Stock Exchange. Anglo American shareholders received one Thungela share for every ten Anglo American shares they own.
Thungela generates four-fifths of sales from exports. The major destination is India. The realised export price can sometimes be more than treble the domestic price.
There are reserves of 137Mt and resources of 756Mt. Thungela operates four open cast mines and three underground mines. They are all around 600km away from a major port via rail.
Production costs are well below the average selling price of seaborne thermal coal of $91/t, which was a year-to-date f...