Anglo American identifies three strategic priorities

Operational excellence – Anglo American is focused on operational and cost performance to deliver superior margins. The organisational re-design simplifies work execution and provides clear accountabilities for delivery. Anglo American is on track to achieve the previously announced run rate of US$1 billion annual savings in operating expenditure in 2024. Additionally, a further $0.8 billion of cost out from the end of 2025 is targeted. The capital expenditure reduction of US$1.6 billion over the next three years set out in

December 2023 is also on track. Technology is being deployed into each operation in a targeted fashion to deliver improvements in safety, costs and productivity.

These initiatives are creating a more focused and robust platform to deliver consistent operational performance and give confidence in the effectiveness of further change. The portfolio simplification and organisation streamlining will also support greater focus on operational excellence and value creation.

Portfolio simplification

  • Transformation of the portfolio to focus on world class assets in copper, premium iron ore and crop nutrients
  • Changes implemented in the most effective manner, with timing to optimise shareholder and stakeholder value

A comprehensive asset review been completed. Each asset was assessed for competitiveness and performance optimisation potential, and for its role in the portfolio. The review examined how the portfolio as a whole can deliver the most attractive through the cycle returns for Anglo American’s shareholders considering asset competitive positioning, commodity outlook and the cash flow required to realise both growth potential and sustainable shareholder returns. The impact of portfolio composition on the recognition of the value of the underlying assets by the market has also been considered.

Leave a Reply

Your email address will not be published. Required fields are marked *