KEY POINTS
- The CEO of Anglo American is adamant that the company will remain independent following reorganization.
- With the assets of diamond, platinum, nickel, and coal sold off, the focus is now on copper.
- Based on market conditions, the business will oversee the progressive sale of its Anglo American Platinum interest.
Anglo American Plc is undergoing significant restructuring, but CEO Duncan Wanblad insists that the company will not become a “sitting duck” for acquisition despite simplifying its portfolio.
Particularly in light of rival BHP Group’s recent $49 billion takeover attempt, speculation has been sparked by the mining giant’s recent disposal of its coal, diamond, platinum, and nickel businesses.
Returning attention to energy transition metals
The goal of the reorganization is to make Anglo American Mining into a mining business that specializes on energy transition metals, especially copper.
The corporation will have a renewed focus on copper, which will make up 60% of its operations, after selling off businesses including De Beers, Australian coal mines, nickel mines in Brazil, and its investment in Anglo American Platinum (Amplats).
Other significant assets that Anglo will keep are its iron ore mines in Brazil and South Africa, its copper operations in Chile, and the Woodsmith fertilizer facility in the United Kingdom. This emphasis is in line with worldwide initiatives to switch to renewable energy sources and to increase the availability of critical metals needed to build infrastructure supporting them.
Addressing takeover concerns
According to several analysts, Anglo’s focused approach on copper and streamlined business model make it a desirable takeover prospect. But Wanblad disproved this idea in a virtual speech at a mining conference in Johannesburg, saying, “I don’t think it’s inevitable at all. We’ll be a successful, independent business in the industry.”
Wanblad stressed, according to Mining.com, that achieving the company’s aim to create value for stakeholders and shareholders comes before possible rival moves.
Despite pressure from larger mining businesses such as BHP Group and industry consolidation, he reiterated his commitment to Anglo American’s independence.
Managing platinum divestment
The projected Anglo American Platinum (Amplats) disposal is one of the major components of Anglo’s reorganization. In an indication of a slow withdrawal, the business sold institutional investors a 5.3 percent interest in Amplats last month. Wanblad mentioned that, depending on the state of the market, Anglo would think about releasing a second batch of shares.
“There might only be one more opportunity to do it, and if we did, it would be completely dependent on markets at the time,” Wanblad said. The transaction is a component of a larger initiative to guarantee a smooth transition and strategically manage the disposal.
Anglo American is clearly committed to staying independent, focusing on providing value and establishing itself as a leader in metals essential for the global energy transformation, even as it turns its attention to copper and vital energy transition metals.
