Anglo American sells two Chile copper mines

Anglo American has completed the sale of two copper mines in Chile in a deal worth $US300 million.

Anglo sold the open-pit Mantos Blancos and Mantoverde mines to UK-based investment firm Audley Capital.

The deal means Anglo has now offloaded $US1.9 billion worth of assets as it moves to right-size the company after posting a $US3 billion writedown for the first half of 2015.

The miner reported a half-year profit before tax of $US1.9 billion, or 36 per cent less than in the same period last year, blaming weaker commodity prices.

Commodity price-driven impairments totalled $US3.5 billion after tax, including $US2.9 billion at the Minas-Rio ironore project in Brazil.

Anglo says it is now focused on accelerated cost and capex reductions to mitigate price weakness.

The company is targeting a saving of $US500 million through the reduction of 6,000 overhead and other indirect roles.

It also expects to generate at least $US3 billion in proceeds from the sale of assets, reducing its assets from 55 to 40.

“The completed sale of Norte to the Audley consortium represents further progress with our asset disposal programme and wider strategy to reshape the Anglo American portfolio, prioritising our capital on those assets that will create the most value for our shareholders over the long term,” Anglo’s managing director, Mark Cutifani, said.

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