Wrap Text
AGL - Anglo American announces non-core businesses for divestment and
streamlining of management structure
Anglo American plc
Incorporated in the United Kingdom
(Registration number: 3564138)
Short name: Anglo
Share code: AGL
ISIN number: GB00B1XZS820
("Anglo American plc" or "the company")
News Release
22 October 2009
Anglo American announces non-core businesses for divestment and streamlining
of management structure
Anglo American plc ("Anglo American" or "the Group") today announces a number of
changes across its businesses to create a more streamlined management structure
and further focus the Group on its core mining portfolio.
Seven commodity business units ("BUs") are being created, with management teams
located in the area of core geographic focus for the BU and responsible for
operational performance and project delivery. These are:
- Platinum (South Africa): CEO Neville Nicolau
- Copper (Chile): CEO John MacKenzie
- Nickel (Brazil): CEO Walter De Simoni
- Metallurgical Coal (Australia): CEO Seamus French
- Thermal Coal (South Africa): CEO Norman Mbazima
- Kumba Iron Ore (South Africa): CEO Chris Griffith
- Iron Ore Brazil (Brazil): CEO Stephan Weber
Five Group Directors, based in London, will be responsible for corporate
functions, as well as providing strategic support to the BUs and ensuring the
ongoing realisation of group-wide synergies. They are:
- Rene Medori, Group Finance Director (who continues as a member of the
Board)
- Brian Beamish, Group Director Mining & Technology
- David Weston, Group Director Business Performance & Projects
- Mervyn Walker, Group Director HR & Communications
- Peter Whitcutt, Group Director Strategy & Business Development
Anglo American`s decision to divest certain non-core assets builds on the
initiatives completed over the last three years, including the demerger of the
Mondi Group and the sale of the Group`s shareholdings in AngloGold Ashanti,
Highveld Steel and Vanadium, Namakwa Sands and, most recently, Tongaat Hulett
and Hulamin.
Anglo American has determined that the following assets will be divested: Scaw
Metals, Copebras, Catalao and the Group`s portfolio of zinc assets. Together
with Tarmac, which has previously been identified as non-core, these assets
accounted for approximately 11% of 2008 Group EBITDA.
Duncan Wanblad, as Group Director Non-core assets, will manage this portfolio as
a standalone unit. The divestment of these assets will be undertaken in a
manner and on a timetable that will maximise value for Anglo American`s
shareholders. Preparatory work for the separation of these businesses from the
Group`s core operations has commenced. Anglo American will provide further
updates on the divestments as appropriate.
The business unit CEOs and Group Directors will report to Cynthia Carroll, Chief
Executive, and together with her will form the Group`s Executive Committee.
As a result of the reorganisation, a layer of global management is being
removed. This will create a more effective, simple and efficient organisation,
with greater clarity over decision making and greater speed of implementation.
The delayering and other efficiency measures are expected to result in a
reduction of overhead staff of approximately 25% with associated cost savings
anticipated at US$120 million per annum.
Cynthia Carroll, Chief Executive, said:
"I believe that these actions will position Anglo American well for sustained,
profitable growth in the commodities we have identified as being the most
attractive. The portfolio changes we have announced are the logical next step
in focusing the Group on our core mining activities, enabling us to strengthen
our balance sheet further.
"The delayering creates the opportunity for a new generation of executive
management to come through and I look forward to working with them.
"I would like to thank Philip Baum, Ian Cockerill and Russell King for the key
leadership roles they have played at Anglo. I have greatly appreciated their
valuable contributions to the success of the Group and I wish them well for the
future."
Sir John Parker, Chairman, said:
"Today`s announcement represents an important step in creating a more
streamlined business, with enhanced focus on operational effectiveness and
project delivery. We have a truly world class portfolio of assets and these
initiatives further improve our ability to deliver its full potential."
For further information, please contact:
United Kingdom
Nick von Schirnding, Head of Investor and Corporate Affairs
Tel : +44 (0)20 7968 8817
James Wyatt-Tilby, Media Relations
Tel: +44 (0)20 7968 8759
Caroline Metcalfe, Investor Relations
Tel: +44 (0)20 7968 2192
Leisha Wemyss, Investor Relations
Tel: +44 (0)20 7968 8607
South Africa
Anna Poulter, Investor Relations
Tel: +27 (0)11 638 2079
Pranill Ramchander, Media Relations
Tel: +27 (0)11 638 2592
Notes to editors
Anglo American plc is one of the world`s largest mining groups. With its
subsidiaries, joint ventures and associates, it is a global leader in platinum
group metals and diamonds, with significant interests in coal, base and ferrous
metals, as well as an industrial minerals business. The Group is geographically
diverse, with operations in Africa, Europe, South and North America, Australia
and Asia.
(www.angloamerican.co.uk)
Catalao
Catalao is a Brazilian producer of ferroniobium, a key element used in the
strengthening of steel and for superconductive materials and superalloys, such
as in jet engines or MRI scanners.
In 2008, Catalao produced 4,600 tonnes of niobium, generating EBITDA of $80
million. Anglo American owns 100% of Catalao.
Copebras
Located in the agriculturally-intensive Goias state of Brazil, Copebras is a
leading Brazilian producer of phosphate fertilisers and phosphoric acid, used to
supplement natural soil nutrients in order to achieve high crop yields.
In 2008, Copebras produced 982,100 tonnes of phosphates, generating EBITDA of
$244 million. Anglo American holds a controlling interest of 73% of Copebras.
Scaw Metals
The Scaw Metals Group (Scaw) is an international group manufacturing a diverse
range of steel products. Its principal operations are located in South Africa,
South America, Canada and Australia. Smaller operations are in Namibia, Zimbabwe
and Zambia. The main product lines manufactured by Scaw are rolled steel (much
of which is supplied to Scaw`s downstream operations), steel and alloy iron
castings, cast alloy iron and forged steel grinding media, chain, steel wire
rope, strand and wire products. These are supplied to the global construction,
railway, power generation, mining, cement, marine, engineering and agricultural
markets.
In 2008, Scaw produced 771,000 tonnes of steel products in South Africa and
879,000 tonnes internationally, generating EBITDA of $309 million. Anglo
American holds 74% of Scaw South Africa and 100% of Scaw International.
Zinc portfolio
Anglo American`s portfolio of zinc assets includes the 100% owned Skorpion mine
in Namibia and Lisheen mine in Ireland and the 74% owned Black Mountain mine and
Gamsberg project, both in South Africa. In 2008, Anglo American`s zinc
businesses produced 340,500 tonnes of zinc, generating EBITDA of $209 million.
Sponsor: UBS South Africa (Pty) Ltd
Date: 22/10/2009 08:00:25 Supplied by www.sharenet.co.za
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