http://www.theaustralian.com.au/business
ANGLO American chief executive Mark Cutifani says the downturn in coal and iron ore prices has reinforced his faith in the mining giant’s diversified asset base, in contrast to the efforts by BHP Billiton to jettison its non-core commodities.
Speaking to The Australian, Mr Cutifani said a “tough” outlook for iron ore and coal contrasted with the improved conditions in other Anglo American commodities such as diamonds and platinum.
As a result he said he had ruled out Anglo following a similar path to BHP, which last month announced it would spin off its aluminium, manganese, nickel and silver operations and some of its coal mines into a new vehicle.
“The diversity in our portfolio is working for us today. Everyone else is struggling in iron ore and coal in particular, but we’ve got a diamonds business that is going really well, our platinum portfolio looks like it’s starting to rise from the ashes, and nickel,” he said.
“While like everyone we’re suffering a little in the bulks, we’re doing very well in other areas.” Mr Cutifani said Anglo American had a more even spread of quality throughout its various assets than the other diversified miners such as BHP and Rio Tinto.
“We’ve got quality across the portfolio. I think others have probably not stayed focused across the portfolio where we have, and I think that’s turning into a big advantage for us,” he said.
The Wollongong-born Mr Cutifani was appointed chief executive of Anglo American early last year, having previously headed up gold mining heavyweight AngloGold Ashanti.
While at AngloGold Ashanti he had raised the possibility of a spin-off of some assets. AngloGold this week abandoned plans for a split after investors baulked at a $2 billion-plus equity raising linked to the proposal.
Mr Cutifani said investors had been making it increasingly clear to him that they valued Anglo American’s spread of commodities, noting that of the big five mining houses only Anglo and Glencore would have broad commodity exposures in the wake of the BHP split.
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