London, England — MININGREVIEW.COM — 24 October 2008 – Anglo American plc – one of the world’s largest mining companies – is reviewing its project pipeline amid volatility and uncertainty in global markets the global credit crunch, fears of recession and falling commodity prices.
A statement released by the company here said: “Anglo American is conducting a review of its project pipeline to assess capital expenditure profiles on a project by project basis, as well as intensively driving its asset optimisation programme and related cost discipline across the businesses.”
The statement added that Anglo American believed that its strong strategic position and the market fundamentals of its core commodities would continue to drive growth over the medium and long term, with constrained supply and growing demand led by the secular trend of urbanisation and industrialisation in China and other developing countries.
“The current volatility and uncertainty in global markets – coupled with the slowdown in the world’s major economies – has had a significant impact on commodity prices,” it continued. “The mining industry has already seen the curtailment of some high cost operations, and the credit environment is expected to limit the funding and expansion capabilities of many of the junior mining companies. It is against this economic background that we have taken this latest action,” said Anglo American.
In its third quarter production report, the company – the world’s fourth-biggest diversified mining group by market value – revealed that copper production for the three months to 30 September had fallen 12% to 148 600 tonnes from 170 300 tonnes in the same period last year.
Platinum output had dropped 11.1% to 543 000 ounces, while iron ore output had jumped 29.1% to 10.1 million tonnes, and manganese ore had risen 26.6% to 732 000 tonnes.