Anglo Hastens Retreat From Coal, Iron Ore as Losses Double
- Miner considering exit of Kumba Iron Ore, including spinoff
- Planning to raise as much as $4 billion by selling mines
Markets React to Anglo American
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Anglo American Plc is speeding up plans to pull out of coal and iron ore after losses bled into a fourth year and the company became the first major London-based miner to be rated junk.
Losses doubled to $5.62 billion in 2015 as commodity prices plunged, pressuring Anglo’s balance sheet already weighed down by $12.9 billion in debt. The miner is trying to engineer a turnaround focusing on its best mines that produce diamonds, platinum and copper, while shunning bulk commodities. Anglo wants to raise $4 billion from selling mines and reduce net debt to less than $10 billion this year.