Anglo productivity up 40%
JOHANNESBURG (miningweekly.com) – Mining company Anglo American, which has reduced the number of assets in its portfolio from 68 in 2012 to 42 now, is producing more product from those 42 assets than it was from the 68.
As a consequence, the product produced per person is currently 40% higher than it was four years ago.
With that, the company has seen a 33% reduction in operating costs and is on track to deliver a $1.6-billion cost improvement and a $1-billion cash flow improvement when it reports in February.
While continuing to adhere to its announced strategy of reducing the asset number still further to 37, Anglo currently finds itself in a position to be considerably more price assertive when dealing with offers for its mining businesses outside of diamonds, platinum and copper – the chosen three.
It is becoming increasingly comfortable to continue operating and investing in its iron-ore, thermal coal, coking coal and other assets earmarked for disposal, until offers arise that match or better the price tags set for them – and also benefit the countries concerned.
Anglo CEO Mark Cutifani makes the point that Anglo’s sale of Rustenburg platinum mine to South Africa’s Sibanye Gold was right for South Africa because Sibanye is committed to investing in the asset for the long term, whereas Anglo American Platinum has other investment priorities.
Meanwhile, it is continuing to go all out to meet all the commitments to shareholders, which could mean that it will have only 37 assets when it reports in February, as it is not deviating from its disposal strategy despite the improved commodity price climate.
It laid the foundation for change in 2015, began experiencing the benefits of that this year buoyed by better commodity prices, and expects to be set up for the future as it goes into next year.
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