UK-based mining giant Anglo American has announced that, after registering a net loss of $5.6 billion for 2015, the highest in its history, it will focus on its diamond, platinum and copper assets, as part of its restructuring program, in order to improve cash flows and materially reduce net debt. In addition, in light of the commodity price environment, the company has ceased or is ceasing production at a number of operations, such as its Moranbah and Grosvenor metallurgical coal businesses and also at certain thermal and metallurgical coal operations in South Africa and Australia.
With the restructuring program, the company plans to save $1.9 billion of additional EBIT benefits and an additional $3-4 billion in asset disposal proceeds.
The company stated that the evaluation and sales processes for a number of its major non-core assets are also progressing. Sales have been agreed for the Dartbrook and Callide coal mines in Australia, while the sale of the Kimberley Mines has recently been completed. Meanwhile, as regards its South African subsidiary Kumba Iron Ore (KIO), Anglo American stated that it has initiated a review to consider options to exit from KIO at the appropriate time, including a potential spin-out.