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Anglo American to Divest its Met Coal Operations, Focus on Cooper, Premium Iron Ore



May 15, 2024 - Diversified miner Anglo American said May 14 that it will divest its metallurgical coal business and instead focus on copper and premium iron ore businesses, a move it said is critical for delivering products aimed at energy transition.

The move comes just a day after it rejected a revised bid by another large miner BHP.

As part of its strategy to make a simpler portfolio of world-class assets, Anglo said it plans to implement a number of major structural changes, including divesting its met coal operations. Anglo said the company is currently responding to strong buyer interest for its met coal business.

Anglo's move represents the most radical changes to the company in decades, according to the company.

The company is also exploring options for care, maintenance and divestments for its nickel operations.

Meanwhile, Anglo said it will retain its crop nutrients business as it looks to unlock significant value for all these assets.

"We set out our clear strategic priorities earlier this year - operational excellence, portfolio simplification, and growth. Our decision to focus Anglo American's portfolio in our world-class resource asset base in copper and premium iron ore - while retaining our crop nutrients optionality at Woodsmith - marks a major new phase in executing our strategy," Anglo American CEO Duncan Wanblad said.

Anglo said its iron ore business focuses fully on premium products, which are ideally suited to support steel decarbonization. The company has major resources in Brazil and South Africa.

The company is taking decisive action to deliver value in the company's long-term interests and deliver "products that are so critical to enabling the energy transition and supporting improved global living standards and food security," Wanblad said.

Besides this, Anglo said the company is also looking to demerge its platinum and diamond businesses.

Anglo American's met coal production reached 16 million mt in 2023, while its iron ore output was at 59.9 million mt.

Anglo also produced 826,000 mt of copper and 39,800 mt of nickel in 2023, according to the company.