Anglo to Focus on Core Commodities
October 27, 05
Mining group Anglo American Chief Executive Tony Trahar said the company will focus on platinum, diamonds, coal, base metals and iron ore, part of a restructuring effort. Anglo holds a 45 percent stake in diamond miner De Beers.
“Anglo American will continue to invest in growth projects in its core mining businesses - platinum, diamonds, coal, base metals and iron ore - and will continue to evaluate acquisition opportunities in the mining sector,” Trahar said yesterday (Wednesday).
Anglo is the world’s third largest diversified miner, trailing BHP Billiton and Rio Tinto.
The axe will fall on South African companies AshantiGold, in which Anglo has a 51 percent stake, and Highveld Steel. Anglo will reduce its holding of AshantiGold and sell its 79 percent in Highveld.
Paper, sugar and aluminum companies are under examination while being expected to improve results.
The markets responded favorably to the announcement, with shares rising 6 percent in London. Some of the joy was driven by Trahar’s declaration of a $1 billion cash handout to shareholders via buybacks, dividends or both.
The total amount shareholders will get might grow if Anglo gets cash from selling off companies.