Miners Find $42 Billion Writedowns as Diversification Backfires
- Large mining company writedowns jumped 46% last 12 months
- Industry accepting that prices will stay lower for longer
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A bid by some big mining companies to spread the risk of low commodity prices by expanding and diversifying in recent years has turned into a costly failure.
Over the past 12 months, major mine owners including Freeport-McMoRan Inc. and Vedanta Resources Plc have written down asset values by a combined $42.2 billion, 46 percent more than the previous period, data compiled by Bloomberg show. The adjustments reflect an across-the-board plunge in raw materials and the prospect of a prolonged slump.