South32 settles on asking price for South African coal assets

Diversified miner South32 on Wednesday entered into a binding conditional agreement to sell its South African energy coal assets to Seriti Resources Holdings for an upfront cash payment of R100-million. The purchase price also includes a deferred consideration component where South32 would receive 49% of the free cash flow generated from the energy coal assets for a period starting at the date of completion of the transaction, until March 2024, with the payment to be capped at a maximum of R1.5-billion.