ANGLO American, the globally-diversified mining business, has announced wide-ranging measures it hopes will improve cash flow and reduce net debt.
This will be maintained through focusing the Group on its core portfolio of diamond, platinum group metals (PGMs) and copper assets.
The miner said it would focus on competitive, long life assets with considerable organic growth opportunities that mine consumer-driven materials that are expected to benefit from long term growth trends as the global economy evolves and developing economies mature.
Executives said the measures continued the transformation of the company to create the "new Anglo American", positioned to deliver robust profitability and cash flows through the price cycle.
Among other measures, coal disposal processes are under way.
A total of $1,9 billion of cost and productivity improvements in 2016, is expected to continue into 2017 and beyond as the organisation is aligned with streamlined portfolio.
There is a step-change 50 percent ($250 million) central and global support cost reduction in the medium term while dividend suspended and will resume with payout ratio when appropriate.
Mark Cutifani, Chief Executive of Anglo American, said they were are taking decisive action to sustainably improve cash flow and materially reduce net debt, while focusing on most competitive assets.
"We of course recognise the current challenging environment in which to deliver disposals. We are already engaged with parties interested in several of our assets, but we will only complete those transactions which deliver appropriate value for our investors," said Cutifani.
"So, while we have accelerated our disposal processes, and given our targeted positive free cash flow and our robust liquidity position, we will take appropriate time to secure value outcomes from the disposal programme."
"We are creating the new Anglo American."
Source: All Africa