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The Great Iron-Ore Flood Claims Anglo as Biggest Victim

  • `We’ve watched competitors in iron ore flood the market'
  • Kumba stake sale being considered, as well as Minas-Rio mine
Barrels of processed iron ore rock sit in a storage area at the production plant for the Loulo-Gounkoto gold mine complex operated by Randgold Resources Ltd. in Loulo, Mali, on Thursday, Oct. 31, 2013. Randgold Resources Ltd., a producer of the precious metal in Africa, said there are opportunities to acquire mines on the continent as the biggest companies in the industry scale back operations in the face of lower prices.
Photographer: Simon Dawson/Bloomberg
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The giants of the iron-ore industry have claimed their biggest victim yet: Anglo American Plc.

The 99-year-old mining company, reeling from a $5.6 billion loss last year, is pulling out of iron ore and Chief Executive Officer Mark Cutifani described a bleak outlook for the material. The exit marks the result of a strategy, employed by the world’s largest producers, of continuing to expand output in the face of plunging prices. BHP Billiton Ltd. has described the tactic as ‘‘squeezing the lemon.”