Kumba revival puts Anglo in a tight spot
Iron-ore surge complicates miner's asset sale
Rising on the back of soaring iron ore prices, the share price of Kumba Iron Ore, one of the assets Anglo American wants to get rid of, has more than quadrupled this year. In December last year, the iron ore price was at a dire $38 a ton, and parent company Anglo American needed an urgent fix for its balance sheet. So, that month, it decided to cut loose all its non-core assets, which consist of bulk commodities such as coal and base metals such as iron ore. Almost a year later, it is Anglo's bulk commodities and base metal assets that have outperformed the commodities sector, leaving core commodities platinum and diamonds, which are to remain in Anglo's portfolio, struggling to pick up the pace. But copper was doing fairly well. The iron ore price, which is currently at $78 a ton, earlier this month peaked at $79.60 while coal prices peaked at $307 a ton, a turnaround that analysts have said is surely behind the stalled sale of some of Anglo's assets. Norman Mbazima, deputy chairma...
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