https://www.miningweekly.com
Coal|Copper|Energy|Mining|Platinum|SECURITY
Coal|Copper|Energy|Mining|Platinum|SECURITY
coal|copper|energy|mining|platinum|security

Anglo unveils hiring freeze, document shows, after rejecting $43bn takeover bid

The recruitment of new non site-based permanent employees and contractors has been stopped.

The recruitment of new non site-based permanent employees and contractors has been stopped.

16th May 2024

By: Reuters

  

Font size: - +

SYDNEY – Anglo American has suspended hiring globally, it said on Thursday, as it gets plans under way to simplify itself and build value – and avert a $43-billion takeover bid by Australia's BHP.

Anglo laid out plans on Tuesday to refocus its company on energy transition metal copper while spinning out or selling its less profitable coal, nickel, diamond and platinum businesses, as it moves to fend off the world's biggest miner.

"Having set out the results of our strategy review and the changes we will be making to our portfolio, this is an appropriate measure," an Anglo American spokesman told Reuters.

"Clearly there will be exceptions for critical roles."

Reuters had earlier reported the hiring freeze based on an internal memo from Anglo, reviewed by Reuters.

The London-listed miner has rejected BHP twice, saying its proposals continue to significantly undervalue the company.

"Following yesterday's announcement of our plans to unlock significant value through a simplification of our portfolio ... it is appropriate that we put in place a freeze on the recruitment of all non site-based permanent employees and contractors across all Businesses and Group Functions," people and organisation director Monique Carter said in the memo.

Site-based employees are workers who are based at mines.

"In instances where formal written offers have been made to a candidate, we will honour those commitments however no new offers should be made," Carter said, adding the freeze also applied to consultants beyond those already contracted.

Anglo employs around 60 000 staff globally of which slightly more than half are based in South Africa, showed its most recent annual report.

BHP's options to take over Anglo are narrowing as it approaches a May 22 deadline to lodge a binding offer.

"There is certainly pressure on Anglo's management to prove themselves," said analyst Kaan Peker at RBC, adding that management will want to be keeping a strict lid on costs as the process unfolds.

Anglo's plan to spin out its Australian metallurgical coal business could ultimately attract Rio Tinto, which exited its coal business in 2018, to the pared-back company.

"Management buys themselves six to nine months or a year, then arguably you might have three interested parties at the table," Peker said.

In its proposed takeover, business divisions that BHP expects will yield cost savings through minimising duplication include Queensland metallurgical coal, where both miners operate, and the companies' Latin American copper businesses.

Australia's mining and energy union said on Wednesday it would seek urgent meetings with Anglo to discuss workers' job security.

Anglo shares closed up 0.2% at 26.48 pounds on Wednesday, below BHP's latest offer of about £27.53 a share.

Edited by Reuters

Comments

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
AutoX
AutoX

We are dedicated to business excellence and innovation.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 10 May 2024
Magazine round up | 17 May 2024
17th 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
PLUS
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?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.191 0.224s - 107pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: