Nov. 6 (Bloomberg) -- Anglo American Plc, the world's fourth-biggest diversified mining company, is considering acquisitions after share prices of rivals fell, Chief Executive Officer Cynthia Carroll said.

Acquisitions may be preferable to developing new mines or expanding existing ones, she said in a speech today at Sishen, an iron-ore mine in South Africa owned by Anglo's Kumba Iron Ore Ltd. unit.

``We have an impressive project pipeline but the current economic environment challenges the pipeline's viability,'' Carroll said. ``We are therefore in the process of actively reviewing the timing of our projects against the background of the difficulties of assessing capital and the prospect of attractive acquisition opportunities that could generate cash from day one.''

The global credit crisis has prompted metal prices to plunge, pushing down share prices and making companies easier to acquire for rivals with cash. The 162-member Bloomberg World Mining Index has fallen 63 percent this year.

``Financially strong companies might be thinking about acquisitions,'' Matt Brenzel, a fund manager at Cape Town's Cadiz African Harvest Asset Management, said in an interview. The shares of some miners ``have been clobbered.''

The drop in commodity prices has been overdone as has the decline in share prices, Mark Moody-Stuart, Anglo's chairman, said in a separate speech in Cape Town today.

Platinum Mines

``Mining companies are not entirely unhappy to defer projects,'' Moody-Stuart said. ``Costs have been enormously inflated. Some cooling, some smoothing of the boom, would be beneficial in some ways.''

The Standard & Poor's GSCI Index of 24 commodities has fallen 31 percent this year. Platinum has fallen 45 percent while copper has declined 43 percent. Anglo controls platinum mines in South Africa and copper mines in Chile.

Anglo plans to boost its production of iron ore fourfold by 2016, to 150 million metric tons, Carroll said today. That would give the company a 13 percent share of the seaborne export market, she said.

Anglo fell 15 percent to 1,326 pence in London, bringing its decline this year to 57 percent. The company has a market value of 17.5 billion pounds ($27.7 billion).

To contact the reporter on this story: Antony Sguazzin in Johannesburg at asguazzin@bloomberg.net

Last Updated: November 6, 2008 12:37 EST