The miner, which posted its first annual net profit in five years, is keeping its Kumba Iron Ore division as well as the coal mines that were on the chopping block.

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South African Coal Mining Holdings Limited (SACMH) is a junior coal producer with operations in the Ermelo / Breyten district of the Mpumalanga Province of South Africa. Having developed a reputation as specialist in thin seam open cast and underground coal mining, SACMH produces and processes coal products for international markets.

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The three mines supply approximately 24Mtpa of thermal coal to Eskom's Lethabo, Tutuka and Kriel power stations which collectively account for almost a quarter of South Africa's current power supply.

The coal business doesn't look nearly as promising as it did two years ago, when miners were looking for mines to buy hoping to meet China's demand, the world's top coal consumer.

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Every year, South Africa's coal mines – operational and abandoned – are estimated to release greenhouse pollution equivalent to 900,000 cars. Proper rehabilitation of mines includes backfilling and sealing old shafts, halting the release of carbon dioxide, methane and other greenhouse gases.

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The company also sought to reduce its exposure to South Africa by proposing to sell coal and manganese mines in the country, as well as Kumba, a large iron ore business.

T he FTSE 100 mining giant, which was founded in South Africa, has been looking to reduce its exposure to the country and to thermal coal, which has fallen out of favour with international ...

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South32's South Africa Energy Coal unit, the country's thirdbiggest exporter of the fuel, was split into a standalone business earlier this year in preparation for a sale.

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Coal South Africa's export product is derived from our four whollyowned and operated mines – Goedehoop, Greenside, Khwezela and Zibulo, as well as from Mafube colliery – a 50:50 joint venture with diversified resources group Exxaro.

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South32's energycoal business in South Africa has three operating mines, which produced almost 29 million metric tons of the fuel last year. Phembani already controls 8 percent of the mines and may look to increase those stakes, according to the people.

South Africa's formal gold sector still churns out about 4 billion in revenue every year. Along with platinum, coal and iron ore, it's an important part of the economy.