By the end of 2025, Anglo American will focus solely on copper, iron ore, and crop nutrients—the mining giant plans to demerge its platinum, De Beers, steelmaking coal, and nickel businesses.
Anglo American Platinum will have a secondary listing in London, separating from the main company. De Beers and other businesses will also go their separate ways.
CEO Duncan Wanblad described this as a simplification and transformation. “We’ll be in a more resilient financial position,” Wanblad said. “We have considerable growth options within the portfolio.”
The company sees significant benefits in its copper mines in South America. These mines provide a near-term production uplift of 30%. South African and South American iron-ore mines also offer cash generation potential.
Anglo’s Woodsmith project in England will provide a food security option. This crop nutrient project is considered one of the best megatrends in today’s markets. “We believe this business will be valued more positively by the market,” Wanblad told investment analysts.
The company aims to transform over the next 18 months. “The new Anglo has a powerful investment case,” Wanblad said. “We have a high-quality set of portfolio assets.”
Anglo expects to save on costs and improve its EBITDA margin with this streamlined structure. The company is confident in reshaping itself for better through-the-cycle performance. “We’re maximizing value recognition by the market,” Wanblad said.
Legal, technical accounting, and commercial work is ongoing. Buyers are being engaged, and the organization is being designed for a smooth transition. “We’re ready to execute as soon as these processes are complete,” Wanblad added.
The disposal of steelmaking coal in Australia is moving quickly. For nickel, the company is limiting price pressure on cash flow and progressing with a preferred sale option. Anglo Platinum is on track for a 2025 execution. “We’re working to deliver the separation effectively and efficiently,” Wanblad stated.
Past experiences with Mondi and Thungela took over 18 months, but Anglo expects to move faster this time. Anglo Platinum already has listed company processes, systems, and governance structures in place. “That accelerates this process, although complex work remains,” Wanblad said.
Ensuring Anglo Platinum’s separation is done right is crucial. The company seeks to maintain business continuity and achieve efficiency targets. Anglo is considering a secondary listing of Anglo Platinum on the London Stock Exchange.
De Beers, facing industry twists and turns, is positioned to navigate future challenges. “We’ll exit for value most likely later in 2025,” Wanblad said.
The organization design for the new Anglo is underway. “Agility and accountability are key,” Wanblad emphasized. The company aims to implement its future structure as divestments and demergers complete.
Operational excellence and portfolio transformation remain immediate focuses. Growth opportunities are also being pursued, with an emphasis on sustainability. The company targets significant copper production, with expansion potential.
Kumba Iron Ore, particularly in South Africa, benefits from carbon-efficient transitional steelmaking processes. Minas Rio in Brazil produces high-quality DRI ore. Premiums for these products are expected as the global steel industry decarbonizes.
The Woodsmith project has been slowed to prioritize balance sheet deleveraging. Sinking of the production shaft is paused, and service shaft work continues. The company is conducting a feasibility study to optimize the business case.
Planned maintenance on the tunnel boring machine is underway. Ventilation shafts are being connected, with tunneling to resume at a slower rate. The development plan will support the final investment decision when the balance sheet is suitable.
Wanblad believes the Woodsmith project will be a cornerstone of the future portfolio. Tight discipline in capital allocation and cash flow generation is being exercised. “We’re improving operational leverage to maximize asset value,” Wanblad said.
The portfolio is being transformed, and the divestment program is being executed. By the end of next year, Anglo expects to deliver a portfolio with fully recognized asset value and growth potential.
“We’re reshaping this business into the next-generation mining company,” Wanblad said. “We have our eyes firmly on the prize.”
Source: Mining Weekly
