VIDEO: Anglo American's Cutifani on way forward
After weeks of speculation, battered mining giant Anglo American (LON:AAL) has finally revealed details of its radical “portfolio restructuring,”announced in December, in response to a global rout in commodity prices that punished the costly mines the company operates around the world.
Anglo’s plans, unveiled at the same time it posted a jaw-dropping $5.6 billion full-year loss in 2015, includes completely exiting the coal sector by selling its remaining operations in Australia, South Africa and Colombia.
The London-listed miner also said it would extract itself, over time, from its iron ore business, including its Kumba unit in South Africa and its Minas-Rio project in Brazil. However, Anglo said it might retain the Brazilian operation for at least three years.
Nickel units, and a minority stake in the Samancor manganese business controlled by South32 (ASX, LON:S32), would also go, the company said. Instead, the world's number five diversified miner will focus on its copper, diamonds and platinum businesses.
In the video below, CEO Mark Cutifani outlines his strategy to create a new Anglo American and discusses the group's preliminary results and market outlook.