UPDATE 1-Anglo American appoints new head of South Africa coal business

(adds context on Anglo, coal market)

JOHANNESBURG/LONDON, March 5 (Reuters) - Global miner Anglo American Plc AAL.L has appointed Themba Mkhwanazi as head of its coal business in South Africa in the latest management change since a new chief executive took charge almost a year ago.

Mkhwanazi is currently Rio Tinto's RIO.AX RIO.L regional general manager for America and his appointment, which follows the retirement of Godfrey Gomwe, will be effective in the second quarter of this year.

Chief Executive Mark Cutifani, appointed less than a year ago, is streamlining the company's organisational structure and has made new appointments as part of a business overhaul.

News Search ID:nL5N0LJ0N2 News Search ID:nWLB004MV

The coal business makes up about 8 percent of the diversified miner's earnings before interest and tax.

Underlying operating profit from its South African coal operations have fallen 40 percent in 2013 from a year earlier, to $283 million in 2013.

Coal prices have been battered by excess supply and weakening demand growth from emerging markets.

About 20 percent of the world's producers are currently loss-making, according to industry sources.

In South Africa, the sector is facing a change in legislation which could force miners to sell more material domestically and at lower prices.

Mining minister Susan Shabangu said last month discussions were under way that could lead the state to declare minerals such as coal "strategic", which could curb exports.

(Reporting by Olivia Kumwenda-Mtambo and Silvia Antonioli; Additional reporting by Henning Gloystein; Editing by Ed Stoddard and David Evans)

((Olivia.Kumwenda@thomsonreuters.com)(+27 11 775 3159)(Reuters Messaging: olivia.kumwenda.thomsonreuters.com@reuters.net))

Keywords: ANGLOAMERICAN/COAL CEO