HomeBase MetalsAnglo American's positive outlook

Anglo American’s positive outlook

Cynthia Carroll,
Chief Executive,
Anglo American
London, England — MININGREVIEW.COM — 16 April 2008 – Anglo American plc – a global leader in mining and natural resources – is predicting a strong demand growth of 4 to 5%, compounded annually over the next 10 years, for most key commodities.

Addressing a meeting of shareholders here yesterday, chief executive Cynthia Carroll said: “We remain very positive on copper, bulk commodities – especially iron ore and metallurgical coal – and for platinum group metals.”

She went on to say: “We expect this demand to be driven mainly by China, as well as by India and other developing countries. And it is likely to be bolstered by higher than historical real prices, tight supply and robust demand growth,” she added.

“Tempering that, however, is the continuation of high cost inputs in the form of energy, fuel and consumables, combined with rising capital costs and critical staff shortages,” Carroll warned.

“Added to these,” she emphasised, “there are problems relating to assurance of electricity supply – most critically in South Africa, where we are working with Eskom and the government to implement solutions – but also potentially in Chile and Brazil.”

Looking ahead, Carroll stated that Anglo American is focusing on driving value through both performance optimisation and growth.

“We are strongly positioned with our unique portfolio of assets,” she said. “We have the best resources in the world in platinum, while De Beers remains the paramount name in diamonds; we are building strong positions in base metals, iron ore and coal; our mines have among the longest lives in the industry; and our overall cost position continues to improve,” she added.

“These are truly exciting times for Anglo American and for our sector, and I look forward to another successful year, Carroll concluded.