CHAPTER 8:Business environment and portfolio changes

8.6

TRANSFER OF OPERATION AND DISPOSALS OF JOINT OPERATION, SUBSIDIARY AND ASSOCIATE

	Group
For the year ended 31 December 2020	Arnot operation¹ Rm	EMJV² Rm
Consideration:
– Cash transferred	(14)
Total disposal consideration	(14)
Carrying amount of net liabilities sold	18	17
– Non-current other assets	(1 164)
– Financial assets at amortised cost	(280)
– Other current assets		(612)
– Provisions	1 444	612
– Retirement employee obligation	7	17
– Trade and other payables	5
– Other current liabilities	6

Gain on transfer of operation/disposal of joint operation³	4	17

¹	Transfer of the Arnot operation to Arnot OpCo.
²	Relates to the disposal of EMJV.
³	After tax of nil.

	Group
For the year ended 31 December 2019	Tumelo subsidiary¹ Rm	Tronox UK associate² Rm
Consideration:
– Cash		1 597
– Loan to associate	142
Total disposal consideration	142	1 597
Carrying amount of net assets/investment sold	(177)	(1 327)
– Property, plant and equipment	(21)
– Investment in associate³	(92)	(1 327)
– Financial assets at amortised cost	(12)
– Deferred tax asset	(10)
– Other current assets	(1)
– Provisions	9
– Deferred tax liability	27
– Trade and other payables	4
– Other current liabilities	1
– Non-controlling interests	(82)

(Loss on loss of control)/gain on disposal⁴	(35)	270

¹	On 1 January 2019, Exxaro lost control over the management function of Tumelo. This resulted in Tumelo being accounted for as an associate at an initial carrying value of nil.
²	Relates to the redemption of membership interest in Tronox UK.
³	The carrying amount reduced during the year by R460 million as a result of a dividend distribution received from Tronox UK.
⁴	After tax of nil.

	Company
For the year ended 31 December 2020	Eyesizwe¹ Rm	Exxaro Beijing² Rm
Consideration:
– Cash	924
– Loans advanced	196
Total disposal consideration	1 120
Carrying amount of investment sold/deregistered	(998)	(1)
– Investment in subsidiaries	(998)	(1)


Gain on disposal/(loss on deregistration) of subsidiary³	122	(1)

¹	Relates to the shares sold to Exxaro ESOP SPV and Exxaro Community NPC (refer note 8.7).
²	Relates to the deregistration of Exxaro Resources (Beijing) Commercial Company Limited.
³	After tax of nil.

		Company
For the year ended 31 December 2019		Tronox UK associate¹ Rm
Consideration:
– Cash		1 597
Total disposal consideration		1 597
Carrying amount of investment sold		(1 091)
– Investment in associate		(1 091)

Gain on disposal²		506

¹	Relates to the redemption of membership interest in Tronox UK.
²	After tax of nil.