London, England — MININGREVIEW.COM — 22 October 2009 – Mining giant Anglo American plc “’ one of the world’s major diversified mining groups “’ has announced a restructuring plan that will shed a quarter of overhead staff and save US$120 million (R950 million) a year.
The company “’ criticised by one-time predator Xstrata and some investors for a top-heavy management structure “’ announced today that it would create seven new decentralised business units.
“Today’s announcement represents an important step in creating a more streamlined business with enhanced focus on operational effectiveness and project delivery,” said John Parker, who was appointed as Anglo’s new chairman in August.
Last week, Xstrata gave up its pursuit of a merger with Anglo after it refused demands from Anglo shareholders that it pay a premium.
Today’s Anglo announcement also said it would divest more assets including Scaw Metals and its zinc operations. Together with road products group Tarmac, which is already on the block, the assets account for about 11% of 2008 core earnings.
The company also posted a 13.4% rise in third-quarter copper output and a 15.7% increase in iron ore “’ its two most important products.
Anglo “’ the world’s fourth biggest diversified mining group by market value “’ said it produced 168 500 tonnes of copper and 11.9 million tonnes of iron ore during the three months to 30 September 2009. Copper is expected to account for 42% of operating profit this year and iron ore for 25%.
Anglo said thermal coal production fell 1% and metallurgical coal output declined by 2.6%. Coal is Anglo’s third most profitable product, and would bring in about 20% of operating profit.
In July, Anglo posted a 69% drop in underlying first-half earnings per share due to sharp falls in commodity prices, and said its cost-cutting programme would reach half of its eventual US$2 billion (R16 billion) target this year.