Anglo American signals major shift in strategy on asset sales
Many assets that were on the chopping block have had a reprieve, and a resumption of dividend payments is on the horizon
Anglo American unveiled a major shift in strategy on Tuesday, pulling back from plans to sell a large number of mines to focus on just 16 mines in three commodities. It exceeded its debt reduction targets and improved the overall business. Anglo reduced its net debt by a third during 2016, far exceeding its target, and said dividends could be resumed at the end of the year. It said it would hold onto a range of assets and suggested it could keep Kumba Iron Ore and its South African export-focused coal mines. Anglo had embarked on a radical strategy of selling a large number of assets to repay debt and narrow its focus to just platinum, diamond and copper, but on Tuesday CEO Mark Cutifani said it would not sell its nickel mines in Brazil nor two big coal mines in Australia. “We do not need to sell assets to address the balance sheet issues. It’s done,” Cutifani said. He also suggested the company may retain SA’s largest iron ore miner, which has turned into a cash machine in the high...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.