Anglo American plc
|Public limited company|
|Traded as||LSE: AAL|
FTSE 100 Component
|Industry||Metals and Mining|
(Anglo American Corporation)
(Anglo American plc)
(chairman of the board)
Mark Cutifani (CEO)
|Revenue||US$29.87 billion (2019)|
|US$6.72 billion (2019)|
|US$4.58 billion (2019)|
Number of employees
Anglo American plc is a South African multinational mining company based in Johannesburg, South Africa and London, United Kingdom. It is the world's largest producer of platinum, with around 40% of world output, as well as being a major producer of diamonds, copper, nickel, iron ore and metallurgical and thermal coal. The company has operations in Africa, Asia, Australia, Europe, North America and South America.
Sir Ernest Oppenheimer, a Jewish German émigré, founded the Anglo American Corporation (AAC) in 1917 in Johannesburg, South Africa, with financial backing from the American bank J.P. Morgan & Co. and £1 million raised from UK and US sources to start the gold mining company; this fact is reflected in the company's name. The AAC became the majority stakeholder in the De Beers company in 1926, a company formerly controlled by Alfred Beit, also a Jewish German émigré.
During 1945, the AAC moved into the coal industry by acquiring Coal Estates. Twelve years later, Sir Ernest died in Johannesburg and was succeeded as head of the company by his son Harry, who also became chairman of De Beers. In the late 1940s and 1950s, the AAC focused on the development of the Free State goldfields (seven major mines simultaneously) and the Vaal Reefs mine.
In 1961, the AAC expanded outside of southern Africa for the first time and became a major investor in the Hudson Bay Mining and Smelting Company in Canada. In 1967, the company moved into the steel industry by acquiring Scaw Metals. From 1967 to 1975, it continued to grow and established a number of ventures, including the Mondi Group (timber, pulp and paper), Amgold (later AngloGold Ashanti) and then Amcoal (through the consolidation of several of its mining operations in South Africa; later known as Anglo Coal and in 2010 changed to Anglo Thermal). In 1982, Harry Oppenheimer retired as chairman of the AAC and was succeeded by Gavin Relly. Two years later, Oppenheimer retired from De Beers and passed the chairmanship to Julian Ogilvie Thompson, who in 1990 also became chairman and chief executive of the AAC.
On 24 May 1999, Anglo American Corporation merged with Minorco to form Anglo American plc, with its primary listing on the London Stock Exchange and a secondary listing on the Johannesburg Stock Exchange. Its gold mining operations were spun off into the separate AngloGold corporation, which in 2004 merged with the Ashanti Goldfields Corporation to form AngloGold Ashanti. Anglo American reduced its stake in AngloGold Ashanti to 16.6% in 2008.
In 2000, Julian Ogilvie Thompson retired as chief executive of Anglo American and was succeeded by Tony Trahar. Ogilvie Thompson also retired as chairman in 2002 and was replaced by Sir Mark Moody-Stuart. In the same year, Anglo American acquired Tarmac, a supplier of building materials, and Shell Petroleum Company's Australian coal assets. In 2001, De Beers was privatised after being a listed company for more than 70 years.
In 2002, South Africa's Mining Charter was approved, and Anglo American and other mining companies with operations in the country were mandated to transfer a percentage of their South African production to historically disadvantaged South Africans. From 2002 to July 2008 Anglo American carried out black community economic empowerment transactions (across all businesses with operations in South Africa) totalling R26 billion. Also, in 2002, Anglo Base Metals acquired the Disputada copper operations in Chile from ExxonMobil and opened a representative office in Beijing, China. In 2003, Anglo American acquired a majority stake in iron ore producer Kumba Resources.
In 2007, Cynthia Carroll succeeded Tony Trahar, becoming the first non-South African and first female chief executive of Anglo American. The Mondi Group, a paper and packaging business, was also spun out in 2007. During the next two years, Anglo American opened a representative office in New Delhi, India, acquired control of the Michiquillay copper project in northern Peru and the MMX Minas-Rio and Amapa iron ore projects in Brazil, and later acquired stakes in the Pebble copper project in Alaska.
Anglo American was also accused in 2007 of damaging environmental practices: in order to complete its planned Alaskan Pebble Mine in collaboration with Northern Dynasty Minerals, the company considered building a massive dam at the headwaters of the world's largest sockeye salmon fishery, which it would risk obliterating. Opponents also pointed to the use of cyanide, heavy metals, and acid mine drainage which can all have potentially devastating effects on the environment of the Bristol Bay area. Opponents of the Pebble Mine created Ballot Measure 4 to impose additional water quality standards on new large-scale mines in the state. However, in August 2007, Alaskans voted against the initiative. As of September 2008, the Pebble Limited Partnership had not yet put forward a project proposal and was working to prepare a prefeasibility study for the project in the second half of 2009. The mine proposal would still need to undergo environmental studies and the permitting process, including being subject to state and federal water protections. In December 2013, Anglo American withdrew from the Pebble Limited Partnership.
2010 to present
In early November 2011, Anglo American entered into talks with the Oppenheimer family to divest the latter's remaining shares of De Beers, whereby Anglo American acquired an additional 40% stake for $5.1 billion, increasing their overall stake to 85%. This came at a time of increased labour strikes and international attention to Oppenheimer's involvement in conflict diamonds. Anglo American then sold a 24.5% share in its Chilean copper unit, Anglo American Sur, to Japan's Mitsubishi Corporation for $5.39 billion, paid with a promissory note due on 10 November 2011. With this deal, the Anglo American Sur complex was valued at $22 billion.
In November 2012, Anglo American completed the sale of steel maker Scaw South Africa and its connected companies for a total of R3.4 billion in cash.
In July 2014, Anglo American said it was disposing of its 50% shareholding in Lafarge Tarmac, a building materials joint venture, to cement maker Lafarge SA for a value of not less than £885 million ($1.5 billion); the sale was subsequently completed in July 2015 for $1.6 billion. In October 2014, Anglo American's Minas-Rio iron ore project in Brazil began operating and shipping ore.
In July 2015, Anglo American announced that it would cut 53,000 jobs (35% of their workforce) and that in the first half of 2015, they had a financial loss of US$3 billion. In early December 2015, the company announced that, as part of a restructure, it would be cutting a further 85,000 mining jobs, nearly two-thirds of its work force of 135,000, worldwide. It also announced the consolidation of six of its divisions into three businesses, while dividend payouts to investors were also suspended for a year. The company also had its Dawson, Foxleigh and Callide coal mines in Central Queensland, as well as its Dartbrook coal mine in the Hunter Valley in New South Wales, put up for sale as its shares dropped to a record low on the London Stock Exchange, falling by more than 12 per cent.
In March 2017, British Indian industrialist Anil Agarwal purchased 11% of the company through his family trust Volcan. In September, he took the holding to 20% through another purchase worth about $1.5 billion. In April 2017, the company sold its Eskom-linked thermal coal operations in South Africa for $166 million, marking an important step in the mining giant's strategic overhaul to sharpen its focus on three commodities.
In January 2020, Anglo American made a 5.5p per share offer to buy a polyhalite fertiliser project (in North Yorkshire, England) from Sirius Minerals for £400m. In salvaging the financially troubled project, Anglo American envisages spending around £230m to keep construction going through to at least 2022. The sale was approved by shareholders in March 2020.
Anglo American focuses on natural resources with six core businesses: Kumba Iron Ore, Iron Ore Brazil, coal (thermal and metallurgical),base metals (copper, nickel, niobium and phosphates), platinum, and diamonds, through De Beers, in which it owns an 85% share. In 2008, the company had 105,000 permanent employees and 39,000 contract employees in its managed operations across 45 countries.
In 2008, Anglo American (excluding De Beers) spent $212 million on exploring 21 countries for resources including copper, nickel, niobium phosphates and zinc. The two main types of exploration for the company are greenfield and brownfield, with nearly 70% devoted to greenfield projects.
Anglo American, along with De Beers, backed the manufacturing of a superconducting quantum interference device (SQUID) to help improve the sensitivity of exploration surveys. Anglo American established Boart Products South Africa Limited in 1936 (later named Boart International) to turn the company's stockpile of boart, or low-grade natural diamonds, into drilling products. This initiative resulted in the development of the first mechanically set diamond drill bit and later led to additional research into cutting and abrasive tools.
In December 2010, following delays and high costs, Anglo American gained a key licence from the Brazilian government that would allow work to start on the Minas-Rio iron ore project. Production is initially expected to be 26.5 million tonnes per year; iron ore would be sent through a 525 km slurry pipeline to the Port of Açu. As of October 2014, Minas-Rio is operational and shipping ore.
In November 2014, Anglo American Platinum awarded the design and construction of its Amandelbult Chrome Recovery Plant to Logiman PTY(Ltd). The project was completed on schedule and within budget according to AAP's CEO Mr. Chris Griffith and is now performing well above nameplate design capacity. The inclusion of the Mantserre community, by AAP and Logiman, in the construction as well as for the supply of equipment remains a highlight of the project.
In July 2018, Anglo American announced that it would spend $5.3 billion on developing the Quellaveco copper mine in Peru, which the company acquired in 1992, with the Japanese conglomerate Mitsubishi funding 40% of the total cost. As part of the project, Anglo American also committed 650 million soles ($195 million) towards local community developments projects in Moquegua, where the Quellaveco mine is located.
- List of mining companies
- Mineral Policy Institute
- Extractive Industries Transparency Initiative
- International Council on Mining and Metals
- United Nations Global Compact
- "Anglo American appoints Mark Cutifani as Chief Executive". Archived from the original on 11 January 2013. Retrieved 18 July 2013.
- "Preliminary Results 2019" (PDF). Anglo American plc. Retrieved 27 February 2020.
- "At a glance". Anglo American plc. Retrieved 27 February 2020.
- "Where we operate". Anglo American plc. Archived from the original on 7 August 2010. Retrieved 31 August 2010.
- "Anglo American Annual Report". investis.com. Archived from the original on 31 August 2010. Retrieved 15 March 2015.
- Noon, Chris (21 August 2006). "New Mining Target: Anglo American". Forbes. Retrieved 27 May 2008.
- Chilvers, Henry (1939). The Story of De Beers. Cassell. p. 227.
- Witz, Leslie; Minkley, Gary; Rassool, Ciraj (2017). Unsettled History: Making South African Public Pasts. University of Michigan Press. ISBN 978-0472073344.
- "At De Beers, the dynasty continues under a new name". New York Times. 3 March 1985. Retrieved 19 March 2016.
- "Anglo American chairman apartheid critic to retire". New York Times. 2 March 1990. Retrieved 19 March 2016.
- Thal Larsen, Peter (16 October 1998). "Anglo American creates pounds 6bn London giant". The Independent. Retrieved 6 December 2019.
- "AGM 2008 - Chief Executive speech". Anglo American plc. 15 April 2008.
- "Tarmac takeover cleared". This is Money. 1 March 2001. Retrieved 27 May 2009.
- "Shell to shed coal to Anglo American". Asia Times Online. 2 June 2000. Archived from the original on 11 April 2001. Retrieved 27 May 2009.
- Cowell, Alan; Swarns, Rachel L. (16 February 2001). "$17.6 Billion Deal to Make De Beers Private Company". The New York Times. Retrieved 27 May 2009.
- "Key empowerment charters". SouthAfrica.info. 29 October 2004. Retrieved 27 May 2009.
- "South African mines charter welcomed". BBC News. 10 October 2002. Retrieved 27 May 2009.
- de Bruyn, Chanel (8 July 2008). "Employment equity next big transformation challenge for Anglo American South Africa – Baum". Mining Weekly. Retrieved 27 May 2009.
- "Exxon Mobil completes Chile copper business sale". Dallas Business Journal. 13 November 2002. Retrieved 27 May 2009.
- Jones, Michael (26 April 2007). "Getting Down to Business". Beijing Review. Archived from the original on 30 September 2011. Retrieved 27 May 2009.
- "Anglo's stake in Kumba is now 66.6%". Business Report. 9 December 2003. Retrieved 27 May 2009.
- "Anglo appoints first female head". The Telegraph. 24 October 2006. Retrieved 27 May 2009.
- "Mondi demerger approved by Anglo American shareholders". Packaging News. 26 June 2007. Archived from the original on 18 February 2012.
- "Anglo American Plc keen on Indian tie-ups in mining". China Mining. 7 November 2008. Archived from the original on 25 July 2011. Retrieved 27 May 2009.
- Ram, Vidya (17 January 2008). "Anglo American's $5.5 Billion Spending Spree". Forbes. Retrieved 27 May 2009.
- Berman, Phyllis (22 May 2008). "Queen Bee". Forbes. Archived from the original on 30 May 2008. Retrieved 27 May 2009.
- Vick, Karl (25 December 2007). "Alaskans Weigh the Cost of Gold". The Washington Post. Retrieved 27 December 2007.
- "Alaska voters defeat tougher mining rules". NBC News. 28 August 2008. Retrieved 25 August 2009.
- "Alaska voters validate State's regulatory framework for mining". International Mining. 4 September 2008. Retrieved 25 August 2009.
- Lydersen, Kari (29 August 2008). "Alaska Chooses Largest Gold Mine Over Clean Water". AlterNet. Retrieved 25 August 2009.
- Goldenberg, Suzanne (16 September 2013). "Anglo American pulls out of Alaska mines project". The Guardian. Retrieved 3 August 2015.
- "Anglo American in $5bn De Beers deal with Oppenheimers". BBC News. 4 November 2011. Retrieved 10 November 2011.
- "Anglo American raises stake in De Beers to 85 pct with $5.1B purchase of Oppenheimer stake". The Washington Post. 4 November 2011. Retrieved 10 November 2011.[dead link]
- Kayakiran, Firat; Craze, Matt (10 November 2011). "Anglo Sells Chile Unit Stake in 'Bold' Bid to Thwart Codelco". Bloomberg News.
- Dolan, David (26 November 2012). "Anglo sells Scaw South Africa for $383 million". Reuters.
- "Mining giant Anglo American to sell stake in Lafarge Tarmac for $1.5 bn". London Mercury. 7 July 2014. Archived from the original on 14 July 2014. Retrieved 7 July 2014.
- Mark, Odell. "Anglo American completed sales of Lafarge-Tarmac stake". Financial Times. Retrieved 3 August 2015.
- Kayakiran, Firat (28 October 2014). "Anglo's Minas-Rio to Lift Ebitda by $560 Million, Bernstein Says". Bloomberg News. Retrieved 3 August 2015.
- Patterson, Scott (24 July 2015). "Anglo American to Slash 53,000 Jobs as Commodity Price Falls Hit Results". The Wall Street Journal.
- "Anglo American to cut workforce by 85,000 in restructuring". BBC News. 8 December 2015. Retrieved 9 December 2015.
- Lannin, Sue (9 December 2015). "Anglo American to cut 85,000 mining jobs worldwide as part of restructure, four Australian mines remain for sale". Retrieved 9 December 2015.
- Yeomans, Jon (16 March 2017). "Anil Agarwal's 'dawn raid' on Anglo American throws miner's future up in the air". The Telegraph. Retrieved 25 February 2018.
- Hume, Neil (28 September 2017). "Why Anil Agarwal has lifted his stake in Anglo American to 20%". Financial Times. Retrieved 25 February 2018.
- "Anglo American sells Eskom-tied coal operations in SA". Moneyweb. 10 April 2017. Retrieved 31 August 2017.
- Kajastie, Nia (11 October 2019). "Anglo, Engie to roll out 'world's largest' hydrogen truck". Mining Magazine. Retrieved 23 December 2019.
- "Agreement Reached For Takeover Of Whitby Potash Mine". Yorkshire Coast Radio. 20 January 2020.
- Morby, Aaron (20 January 2020). "Anglo American commits to saving £2.5bn potash mine project". Construction Enquirer. Retrieved 20 January 2020.
- Morby, Aaron (4 March 2020). "Anglo American seals potash mine project takeover". Construction Enquirer. Retrieved 5 March 2020.
- "At a glance". Anglo American plc. Archived from the original on 16 August 2015. Retrieved 3 August 2015.
- "Anglo American completes acquisition of De Beers". Mining.com. 17 August 2012. Retrieved 3 August 2015.
- "Making a difference - Report to Society 2008" (PDF). Anglo American plc. Retrieved 1 June 2009.
- "Annual Report 2008 - Exploration". Anglo American plc. Archived from the original on 7 October 2011. Retrieved 1 June 2009.
- "What we do - Exploration". Anglo American plc. Archived from the original on 24 September 2008. Retrieved 1 June 2009.
- Casteel, Kyran (October 2007). "High definition exploration brings better prospects". Entrepreneur. Retrieved 1 June 2009.
- "Advent to acquire Boart Longyear from Anglo American". Advent International. 7 June 2005. Archived from the original on 7 July 2011. Retrieved 1 June 2009.
- "History of Boart Longyear Company". Funding Universe. Retrieved 1 June 2009.
- Onstad, Eric (12 December 2010). "Anglo to start building Brazil mine, gets licence". Reuters. Retrieved 12 December 2010.
- "Anglo secures key environmental permit for Minas-Rio". Mining Journal. 12 December 2010. Archived from the original on 14 December 2010. Retrieved 12 December 2010.
- "Minas-Río". BNAmericas. 12 December 2010. Archived from the original on 3 December 2013. Retrieved 12 December 2010.
- Casey, JP (27 July 2018). "Anglo American to build $5.3bn copper mine in Peru". Mining Technology. Retrieved 23 December 2019.
- Taj, Mitra (21 August 2019). "Anglo American agrees to earlier community payout in Peru after protests". Reuters. Retrieved 23 December 2019.