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| Anglo American To Halve 2009 CAPEX |
| = Thoroughgoing revaluations reduce CAPEX in all business segments = |
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Global largest mining group Anglo American plc has announced that the Company has completed a wide ranging review of its capital expenditure program in recent weeks, at a time when the mining industry has experienced an unprecedented period of rapid declines in commodity prices due to global economic uncertainty, which led the Company to decide to reduce Capital Expenditure (CAPEX) for 2009 by in excess of 50% to a maximum of $4.5 billion. Cynthia Carroll, chief executive of the Company said: "We have taken decisive action as a result of the fast changing economic climate and have undertaken a thorough re-evaluation of our stay-in-business and development requirements. We have made significant adjustments to prioritize the expenditure in those areas where we expect relative outperformance in the near term while maintaining a high degree of flexibility for our future growth. Beyond these changes, we are making excellent progress with our asset optimization program and procurement and shared service initiatives, driving significant cost and efficiency improvements across the Group. With our robust balance sheet and high quality asset portfolio, Anglo American is well positioned to weather the current weak economic conditions and to continue to prosper for the benefit of all our stakeholders." "Ferrous Metals and Industries", segment which integrates operations of iron or and iron and steel production, will reduce its 2009 CAPEX to $900 million. The following are the results of review of its major projects: Initial iron ore production at Minas Rio in Brazil is expected to incur a delay of 6 - 12 months in commissioning, to the latter half of 2011 or the first half of 2012. Iron ore production in 2009 at Kumba Iron Ore in South Africa is expected to exceed by around ten percent the level of 2008. The major contributor is the smooth ramp-up at Sishen's jig plant operation. Planned 2009 capital expenditure at Sishen South has been optimized along the critical path and first production remains scheduled for the first half of 2012. |
| last modified : Fri 26 Dec, 2008 [11:05] |
