Anglo productivity up 40%
Anglo American, which has reduced the number of assets in its portfolio from 68 in 2012 to 42 now, is producing more product from these 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 the 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, Anglo 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 this year, buoyed by better commodity prices, and expects to be set up for the future as it goes into next year.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
CMTS is a leading, well-established EC&I contractor with 37+ years of mining and industrial experience. We execute full-scope EC&I projects with...
VISIT SHOWROOM
ZF Aftermarket is the after-sales division of the world-renowned German ZF group, a global leader in mobility technology.
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
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?
Receive 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)
➕
Recieve 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
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
