{"id":1264,"date":"2016-02-17T09:20:35","date_gmt":"2016-02-16T22:20:35","guid":{"rendered":"http:\/\/www.bnmme.com.au\/?p=1264"},"modified":"2016-02-17T09:20:35","modified_gmt":"2016-02-16T22:20:35","slug":"anglo-american-to-exit-australia-posts-massive-loss","status":"publish","type":"post","link":"https:\/\/yinghuiinternational.com\/index.php\/2016\/02\/17\/anglo-american-to-exit-australia-posts-massive-loss\/","title":{"rendered":"Anglo American to exit Australia, posts massive loss"},"content":{"rendered":"

\"anglo_1\"<\/a>Anglo American has announced it will completely exit coal, selling off its Australian assets as the miner posts a US$5.6 billion loss.<\/p>\n

Anglo American CEO Mark Cutifani announced the company\u2019s new strategy overnight, describing the new business as streamlined and the changes as \u201cextensive, but essential\u2026we are creating the new Anglo American\u201d.<\/p>\n

\u201cWe\u2019ve deemed all the coal assets in Australia as non-core,\u201d he said in a video released by the company,\u201d and have processes across all of those assets.\u201d<\/p>\n

\u201cDisposals processes are underway in the Moranbah and Grosvenor coal assets.\u201d<\/p>\n

No mention was made of Grasstree in his video statement.<\/p>\n

\u201cChanges that involve people are never easy, but we are committed to a thorough process and to treating people with the care and respect they deserve,\u201d he said.<\/p>\n

The miner will also exit from its nickel, niobium, and phosphate operations globally, cutting jobs from 11,500 today to fewer than 5000.<\/p>\n

Anglo American is also focused on exiting its Samcor Manganese joint venture operations it runs in South Africa with South32.<\/p>\n

It will continue the progress of divesting its previously named non-core Australian coal assets, having already sold off Callide and the Dartbrook coal mines.<\/p>\n

It comes despite an aggressive restructuring plan announced late last year which planned to slash its workforce by two thirds and divest non-core assets.<\/p>\n

\u201cThe markets are challenging the industry,\u201d Cutifani said, \u201cand that is likely to continue,\u201d explaining the impetus for the new decision.<\/p>\n

\u201cDemand growth of certain commodities has slowed, prices also fell steeply, particularly towards the end of last year\u2026and they remain volatile,\u201d he said.<\/p>\n

\u201cWe are taking decisive action to sustainably improve our cash flows and materially reduce net debt, while focusing on our most competitive assets.\u201d<\/p>\n

Anglo American expects these decisions to provide $US1.9 billion in cost and productivity improvements in this year, following a 55 per cent decrease in EBIT for the miner.<\/p>\n

“We have detailed a series of measures, including $1.9 billion of additional EBIT benefits from cost and productivity improvements to deliver positive free cash flow in 2016 and beyond, and an additional $3-4 billion in asset disposal proceeds,\u201d Cutifani said.<\/p>\n

\u201cAs a result, we are targeting net debt of less than $10 billion in 2016, assuming current commodity prices and exchange rates. In the medium term, we are targeting net debt of $6 billion, supporting a return to a solid investment grade credit rating.<\/p>\n

The decision follows on Moody\u2019s downgrading of the miner.<\/p>\n

\u201c[The]downgrade of AAL’s ratings to Ba3 from Baa3 primarily reflects Moody’s assessment that the company now faces a higher business risk due to deterioration in commodities market conditions and a longer and more uncertain deleveraging period than previously expected,\u201d the investors service said in a statement.<\/p>\n","protected":false},"excerpt":{"rendered":"

Anglo American has announced it will completely exit coal, selling off its Australian assets as the miner posts a US$5.6 billion loss. Anglo American CEO Mark Cutifani announced the company\u2019s new strategy overnight, describing the new business as streamlined and the changes as \u201cextensive, but essential\u2026we are creating the new Anglo American\u201d. \u201cWe\u2019ve deemed all … Continue reading “Anglo American to exit Australia, posts massive loss”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[6],"tags":[],"class_list":["post-1264","post","type-post","status-publish","format-standard","hentry","category-mines-and-quarry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p83F9T-ko","jetpack-related-posts":[{"id":681,"url":"https:\/\/yinghuiinternational.com\/index.php\/2014\/12\/11\/%e5%87%ba%e5%94%ae%ef%bc%9acallide-and-dartbrook-coal-mines-for-sale-as-anglo-targets-cost-savings\/","url_meta":{"origin":1264,"position":0},"title":"\u51fa\u552e\uff1aCallide and Dartbrook coal mines for sale as Anglo targets cost savings","author":"yinghui","date":"December 11, 2014","format":false,"excerpt":"Anglo American\u2019s Callide and Dartbrook coal mines are for sale as the miner announces a massive transformation that will see it shed 35 per cent of its workforce. 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