Anglo's split gives it 'flexibility'
A pit head is seen at an Anglo American open pit mine in South Africa A pit head is seen at an Anglo American open pit mine in South Africa
Johannesburg - Anglo American said its decision to split
some South African assets into a different subsidiary gives it the
“flexibility” to dispose of its iron ore and export thermal coal assets should
it decide to do so.
The split, which was partly announced in February without
reasons being given, means that stakes in Anglo American Platinum and De Beers
are now held in a unit called Anglo American South African Investments, while
another subsidiary, Anglo South Africa Capital Proprietary, keeps the
controlling stake in Kumba Iron Ore and the export coal mines.
“The transfer should not be construed as a signal of
intent,” Anglo American South Africa head of corporate communications Pranill
Ramchander said by email on Monday.
Read also: Anglo American profit doubles
In February last year, as Anglo announced a dramatic plan
to sell more than half its mines, the company said it was looking to exit Kumba
as part of a wider retreat from iron ore and coal. Since then, the company
curtailed its divestment plan after a rally in the commodities it was seeking
to exit helped remove the pressure on its balance sheet. Anglo is “happy to
stick with” its iron-ore and export-coal mines in South Africa, CEO Mark
Cutifani told Bloomberg Television on February 21.
“The retention of these assets remains a viable position
given our recent operational and other improvements and our focus on continuing
improvements as we go forward,” Ramchander said.
Anglo owns 77.7 percent of Anglo Platinum and about 70
percent of Kumba. The company last month reported profit doubled on cost cuts
and rising metal prices.