Anglo American PLC (LSE:AAL) said its platinum division will be spun off by June and pay an additional dividend before the split.
Following “significant” progress, the miner on Monday flagged efforts to complete the latest of a string of demergers in the summer and pay out $900 million to shareholders.
Anglo American Platinum would hold primary and additional listings in Johannesburg and London respectively, with the mining giant set to retain a 19.9% stake, a statement said.
Given its roughly 67% holding currently, Anglo American added it would receive approximately $600 million of the dividends before the separation.
The division, which Anglo American chief executive boss Duncan Wanblad flagged was the world's leading platinum group metals producer, had net cash of $900 million as of December.
Adjusted pre-tax earnings in the division had also sat at US$1.1 billion for the last year to December 31, Anglo American noted.
“We are on a clear timeline towards demerging Anglo American Platinum,” Wanblad added.
“Anglo American will no longer have any representation on the Anglo American Platinum board post demerger and we intend to exit our residual shareholding responsibly over time, and subject to customary lock-up arrangements.”