Africa|Copper|Cutting|Indaba|Iron Ore|Mining|Platinum|rail|Trucks|Environmental
Africa|Copper|Cutting|Indaba|Iron Ore|Mining|Platinum|rail|Trucks|Environmental

Anglo American considers deeper cost cuts in face of worst downturn in years

7th February 2024

By: Reuters


Font size: - +

CAPE TOWN - Anglo American may consider deeper cost-cutting measures unless market conditions improve after a fall in prices and a downturn in the platinum group metals (PGMs) sector that is the worst in 35 years, CEO Duncan Wanblad said this week. The diversified miner announced sweeping cuts last year to save about $1.8-billion.

Speaking on the sidelines of the African Mining Indaba in Cape Town, Wanblad told Reuters in an interview he did not see signs of any early PGM recovery, although diamond prices showed faint signs of strengthening.

"To the extent that market conditions continue, we will have to cut deeper and we will just knuckle down and get it done," Wanblad said. "I absolutely understand how difficult this is."

A drop in palladium and rhodium prices has squeezed profits for Anglo's South African units. At its iron ore unit in South Africa, a lack of sufficient rail capacity to ship material to port has also weighed.

South African platinum miners have depended on automakers' use of PGMs to curb exhaust emissions from conventional cars and trucks and face uncertain demand as the world pivots towards electric vehicles.

The country's Mineral Council said on Monday restructuring across the PGM sector could result in between 4 000 and 7 000 job cuts.

Wanblad declined to say how many jobs Anglo American plans to cut at its South African mines, but said it was "very probable" jobs would be affected.

The miner is also scouting for new copper opportunities in African countries, including the Democratic Republic of Congo, the CEO said.

Anglo is searching for assets that comply with investors' environmental, social and governance (ESG) considerations, Wanblad said, while declining to say whether the company is currently in any talks.

DRC, the world's top cobalt supplier, and No. 3 copper producer, has "some fabulous rocks", the CEO said.

"We certainly have looked in the DRC and we will continue to look in the DRC," Wanblad said. "There's some great prospects there potentially. But ... it has to work in the first instance, economically and in the second instance, ethically."

Edited by Reuters



Showroom image
Alcohol Breathalysers

Supplier & Distributor of the Widest Range of Accurate & Easy-to-Use Alcohol Breathalysers

Immersive Technologies
Immersive Technologies

Immersive Technologies is the world's largest, proven and tested supplier of simulator training solutions to the global resources industry.


Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (24/05/2024)
24th May 2024 By: Martin Creamer
Magazine round up | 24 May 2024
Magazine round up | 24 May 2024
24th May 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?







sq:0.146 0.182s - 90pq - 2rq
1: United States
Subscribe Now
2: United States