Anglo American has laid out plans to refocus on copper and iron ore while spinning out or selling its less profitable coal, nickel, diamond and platinum businesses, reported Reuters. The announcement comes after the miner rejected a second takeover bid from rival BHP.
Anglo said it would divest its steelmaking coal assets; explore options for care and maintenance and divestment of its nickel operations; divest or demerge De Beers; and demerge its South African platinum business. The miner expects the trimmed portfolio will lower costs by $1.7 billion.
“These actions represent the most radical changes to Anglo American in decades. I believe these are the right decisions to position Anglo American to capitalize on the outstanding resource endowment opportunities within our portfolio today,” said CEO Duncan Wanblad.
“Our proven and differentiated capabilities within Anglo American, our global relationship networks, and our longstanding reputation as a responsible mining company will help us unlock numerous of these and other opportunities in the jurisdictions where our experience and track record are most valuable and most valued, namely in South America and Southern Africa.”
Anglo said its 100% future-enabling portfolio, which includes 54% copper production, will support the energy transition.
Sources: Reuters and Anglo American