Global miner Anglo American said on Friday it aimed to reduce capital expenditure by $1.8 billion across its businesses by 2026, as it deepens spending cuts across all its units.
“In the near term, given continuing elevated macro volatility, we are being deliberate in reducing our costs and prioritising our capital to drive more profitable production on a sustainable basis,” said Chief Executive Duncan Wanblad in a statement.
The London-listed miner, which had already targeted saving $500 million by cutting corporate jobs and some costs at head offices in Johannesburg, London and other locations, is aiming to cut an additional $500 million by 2024.
It will now reduce production at its South African unit Kumba Iron Ore, where stockpiles had grown to 9 million tons by September on worsening rail bottlenecks, and focus on higher-margin production for its platinum group metals (PGMs) operations.
Sources familiar with the matter told Reuters on Thursday that Anglo was preparing sweeping cost cuts.
(Reporting by Clara Denina, Fex Njini, Chandini Monnappa; Editing by Rashmi Aich and Mark Potter)
