Anglo American reported a further $1.6 billion writedown on its British fertiliser project, while CEO Duncan Wanblad expressed optimism about finalizing a deal to sell the company’s coal assets by early 2025, despite a recent fire at its Grosvenor mine. This move comes as Wanblad faces pressure to enhance returns for investors and execute a strategic plan focused on copper and iron ore following a thwarted $49 billion takeover bid from BHP Group.
The company plans to initiate a two-stage auction process for its coking coal assets in Australia, including the Grosvenor mine, which is expected to resume operations only under new ownership. Wanblad noted significant interest from potential buyers, stating, “There are so many interested potential buyers for this set of assets,” and expressed hope for a deal by the end of this year or early next year.
Analysts at Jefferies estimate that the Grosvenor mine constitutes about 30% of the $4.5 billion value attributed to Anglo’s steelmaking coal business. Following the announcement, Anglo’s shares fell approximately 1%.
In addition to coal, Anglo is seeking partners for its Woodsmith fertiliser project in northern England, which remains a key focus alongside copper and iron ore. The company had previously written down $1.7 billion on the $9 billion project last year.
Interest in Anglo’s nickel assets in Brazil has also been noted, with plans for a formal sale process to commence later this year. The company declared an interim dividend of $0.42 per share, reduced from $0.55 the previous year, reflecting a $672 million loss for the first half, primarily due to the Woodsmith impairment.
Core earnings (EBITDA) were reported at $5 billion, slightly down from $5.1 billion the previous year but above analysts’ expectations of $4.6 billion. Additionally, diamond production was cut by 19% in the first half of the year amid lower prices, leading to a revised output guidance of 23-26 million carats for its De Beers unit.
Analyst Marina Calero from RBC Capital Markets remarked that while an expected recovery in platinum group metals (PGM) and diamond prices could boost sentiment, the outlook for Anglo appears balanced in the near term, particularly as the sale of steelmaking coal assets grows more complex. The restructuring plan also includes divesting De Beers, nickel mines, and demerging its South African platinum unit.