Anglo American, in its recent earnings report on Thursday, disclosed setbacks in its coal and diamond sectors, alongside a projected $1.6 billion writedown at a UK fertilizer mine. These developments come as part of the company’s restructuring efforts, accelerated following its successful defense against BHP’s bid, the world’s largest miner.
CEO Duncan Wanblad emphasized the company’s commitment to this restructuring during a call with reporters, stating, “We are advancing at pace and expect to be substantially through this process by the end of 2025.” The plan involves spinning off or selling its De Beers diamond unit, separating its platinum business, and divesting its coal mines, with the halt of the Woodsmith project in Britain also part of the strategy.
Despite these efforts, Anglo American faces significant challenges. A recent fire and explosion at its key coal mine in Australia have complicated the sale of the De Beers unit, while a tough diamond market further hampers prospective buyers.
The sale of its coal assets, considered the most straightforward aspect of the restructuring, was recently cast into uncertainty by the incident at the Grosvenor mine in Australia. Nonetheless, Wanblad expressed confidence that the company would proceed with selling the entire coal business, including the affected mine, aiming to finalize the deal by year-end.
“Almost all of the bidders have reaffirmed their interest,” Wanblad noted in an interview with Bloomberg TV. “Based on this, we have decided to continue with the process and include Grosvenor in the package.”
