It's All Gone Wrong for One of World's Biggest Mining Companies
- Anglo American will shrink to a shadow of its former self
- $14 billion Brazilian mine epitomizes company's decline
Turmoil in the Mining Industry: Anglo Scraps Dividend
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Even for a company that once had the global monopoly on diamond production during almost a century of all but constant expansion, the collapse in commodities prices is proving too much.
Anglo American Plc, a conglomerate spanning everything from brewing, publishing and gold mining during its peak in the early 1990s, will shrink beyond recognition after Chief Executive Officer Mark Cutifani on Tuesday announced a package of asset sales, mine closures and job cuts. Among the potential casualties is Minas Rio, a Brazilian iron-ore mine where spiraling costs and collapsing prices turned a $14 billion project into the epitome of the company’s predicament.