'Nothing is off the table.' Anglo American eyes R20bn in annual cost savings

Diversified miner Anglo American says it's looking to cut about R20 billion in annual costs in order to get itself through some potentially lean years. Much of the cost cutting will come in the form of job losses in its South African platinum and iron ore miners, the group said on Thursday.

The group will also lower capital expenditure by $1.6 billion (about R30 billion) over the next three years, while cutting unprofitable volumes. This compares to $5.7 billion of capital expenditure in 2023, the same for the previous year.

The majority of the cost curtailment will be in subsidiaries Anglo American Platinum (Amplats) and Kumba Iron Ore, where almost 5 000 jobs could be lost. In addition, Anglo American has also announced a $1.6 billion impairment of diamond producer De Beers. This would leave De Beers with a carrying value of about $7 billion.