Anglo American to cut coal production

Anglo American says it will cut coking coal production over the next few months in response to weakening market demand.

The Wall Street Journal reports Anglo CEO Seamus French, who leads the company's coking coal business in Australia and Canada, said the company was cutting back after strong expansions last year.

"We are going through a planning process where we will adjust to the market conditions and, in the short term, we will cut back," he said.

French told the WSJ high prices last year had led to production increases worldwide and the market was currently in a "period of oversupply".

But he said over the long term Anglo was still aiming to triple coal production by 2020.

Earlier this year Anglo reported lower than expected earnings and said it was aiming to cut 2012 spending by 20 per cent.

Like most major miners in Australia, French also said Anglo was looking to find cheaper ways to make its expansions.

Anglo American operates five coking coal mines in Queensland and one in New South Wales.

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