LONDON, UK – In a move that will be felt across six of the world’s seven continents, Anglo American announced yesterday that it is eliminating 85,000 jobs or two-thirds of its workforce. It is also suspending its dividend, reducing the number of business units, and selling assets.
Not all the 85,000 jobs will disappear as those attached to assets that are sold will likely be transferred with the assets.
The company is restructuring in the face of continuing drops in commodity prices. Operations will be grouped in three areas: De Beers’ will run all diamond operations; base metals and platinum will be rolled into the industrial minerals division; and the bulk commodities unit will concentrate on coal and iron ore.
Anglo said it will close money losing mines, sell its niobium and phosphate business, and put coal assets in Australia and South Africa on the auction block. It is hoping to raise $4 billion through asset sales.
In Canada, Anglo owns De Beers Canada (that announced the suspension of mining at the Snap Lake mine earlier this week in the Northwest Territories) and the Peace River coal operation in northeast British Columbia. Further effects on the company’s restructuring at its Canadian assets is not yet known.
Please visit AngloAmerican.com for more information.