Anglo American to slash production in bid to cut costs

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Anglo American plans to slash mineral production in order to cut costs and combat a slide in its share price that has been far deeper than that at rival mining companies.

Article originally published by The Financial Times. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

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08 Dec 2023

The FTSE 100 group, in which shares have slumped more than 30 per cent this year, said on Friday the production cuts would help lower capital expenditure by $1.8bn between 2023 and 2026 and reduce costs next year.

Shares in Anglo American fell by 6.3 per cent in morning trading on Friday, compounding its woes as the worst-performing of the large diversified mining companies including BHP, Rio Tinto and Vale this year.

Its plans include cutting production at its Kumba iron ore operations in South Africa and going down to one plant at its Los Bronces copper operation in Chile.

Anglo American’s chief executive Duncan Wanblad has encountered difficulties including commodity prices slipping from record highs and production snarls since he took over from Mark Cutifani in April 2022.

Wanblad said on Friday the company was “reconfiguring a number of our assets to adjust the