Anglo American to sell $4bn of mining assets

29 June 2014 (Last Updated June 29th, 2014 18:30)

Mining giant Anglo American is reportedly planning to streamline its business by disposing of under-performing assets, including platinum mines in South Africa.

Mining giant Anglo American is reportedly planning to streamline its business by disposing of under-performing assets, including platinum mines in South Africa.

In addition to South African properties, the company is reportedly considering selling its nickel assets in Brazil and copper mines in Chile, reported the Sunday Times.

"The company is considering sale of platinum mines in South Africa, nickel assets in Brazil and copper properties in Chile."

Production at the company's South African platinum mines was hit by an industry-wide five-month worker strike.

Anglo American, along with other major companies, agreed last week to increase the wages of workers to bring an end to the impasse.

The strike has resulted in $2bn of losses for platinum miners, with Anglo American alone incurring a loss of up to ZAR$11.27bn ($1.06bn) from restricted production levels.

The plan to sell some of its assets will support Anglo American CEO Mark Cutifani's aim to raise the company's profits from 8% in June to 15% by 2016.

The disposal of the assets would help the miner raise $4bn.

Anglo American external communication head James Wyatt-Tilby said: "We have been clear that a number of assets in the portfolio are unlikely to satisfy our stated return criteria and will be divested at the right time."

Anglo American has hired South African investment bank Rand Merchant Bank to auction its underperforming mines.

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