CEO Mark Cutifani said the company would make “tough decisions” in order the restore credibility with investors over the next two years.
Cutifani has revealed plans to increase Anglo American’s return on capital to at least 15 per cent by 2016, and will sell businesses that have been a burden on that average.
“We have spread ourselves too thin,” Cutifani said in Johannesburg yesterday.
“We haven’t invested enough time and intellectual effort to realize sufficient returns on individual assets.”
“We are ranked outside the top 50 mining countries besides having over a trillion US dollars’ worth of reserves, and the largest in the world.”
He also said that the main priorities for the company would include restructuring its platinum business in South Africa and commissioning its Minas-Rio iron-ore project in Brazil.
In May Cutifani said that of the 69 assets held by Anglo American, 31 were delivering only 2 per cent of the company earnings before taxes and interest.
Bloomberg reported that Anglo American would start the sale of the three smallest Chilean copper mines and a $1 billion smelter by the end of the year.
Anglo American has already put four platinum mines up for sale in July, and offered to sell its 50 per cent stake in Lafarge Tarmac to partner Lafarge SA for $1.5 billion.