Anglo American suspending dividend payments, enters radical restructuringStaff writer ▼ | December 10, 2015
Anglo American announced a radical restructuring that includes more asset sales, larger cost cuts and a suspension of dividend payments in a bid to weather a severe drop in commodity prices.
Commodity problems The fifth-largest mining company plans to reduce assets by 60%
It also said it would consolidate its business into three units from six and increased its disposals target to $4 billion from its previous minimum of $3 billion, including the sale of its Phosphates and Niobium businesses.
Anglo American is also suspending its dividend payments for the second half of this year and next year and cutting its capital expenditure significantly in a bid to strength its balance sheet.
Anglo American said it expects to incur impairments of $3.7 billion to $4.7 billion, largely due to weaker prices and asset closures. ■