Hard hit by the collapse of commodity prices, the mining firm Anglo American said on Tuesday that it would drastically expand cutbacks, a process that would lead to the loss of 85,000 jobs out of its current work force of 135,000.þþThe London-based company also plans to suspend its dividend and reduce its business units from six to three as it cuts its assets by 60 percent.þþ“While we have continued to deliver our business restructuring and performance objectives across the board, the severity of commodity price deterioration requires bolder action,” Mark Cutifani, the company’s chief executive, said in a statement. The company characterized the changes as a more “radical restructuring” than it had previously announced.þþThe commodity collapse, driven by a fall in demand from China, has left few mining and oil companies untouched. In late July, Anglo American announced that it would cut 53,000 jobs after reporting a loss of $3 billion for the first half of the year.þþAnglo American said it intended to focus on three areas, De Beers, its diamond operations; industrial metals like copper; and bulk commodities such as coal. On a conference call, executives reaffirmed that the company would sell its phosphates and niobium businesses next year but that it would not have the details of its expanded cuts until February.þþAnglo American said it would reduce capital spending by an additional $1 billion over the coming year and reduce operating costs during the same period by $1.1 billion.þþAnglo American previously cut its dividend in 2009, during the depths of the global financial crisis.þþLast week, De Beers, which is 85 percent owned by Anglo American, said that it had suspended operations at the Snap Lake diamond mine in Canada’s Northwest Territories. That mine, which was supposed to operate until 2028, has been unprofitable since its opening in 2008.þ
Source: NY Times
