Anglo American bullish on mining prospects and strong raw materials demand

2023 12 08T124031Z 1542203755 RC2ZS4A071EZ RTRMADP 3 KUMBA IRON ORE OUTLOOK scaled
FILE PHOTO: Haul trucks are seen at Kumba Iron Ore, the world's largest iron ore mines in Khathu, Northern Cape Province November 15, 2011. REUTERS/Siphiwe Sibeko/File Photo

Mining giant Anglo American expressed strong optimism about its future prospects, stating that they “have rarely looked better” in its recent performance update to investors.

Duncan Wanblad, CEO of Anglo American, underscored the company’s capability to access “world-class” assets anticipating an increasingly promising operational landscape amid robust global demand for mineral products.

Wanblad emphasized a commitment to operational excellence, aiming to enhance cost performance and bolster cash generation. He outlined strategic initiatives including asset disposition aligned with short-term capacities and prevailing market conditions while also considering long-term viability.

The company has pledged support for these efforts targeting a reduction of $1.8 billion (£1.5 billion) in capital costs by 2024 and a short-term reduction in unit expenses despite rising inflation.

Anglo American reaffirmed its production outlook, projecting a 3 percent year-on-year growth. Wanblad expressed, “With regard to the future, the basic supply/demand picture for most metals and minerals is becoming progressively promising.” He pointed out that developed economies globally are allocating capital to meet global climate targets, indicating sustained demand for responsibly produced raw materials.

In alignment with demand trends, Anglo American aims to execute a pipeline of projects focused on increasing marginal returns and addressing evolving market needs.

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