Anglo American chief's salvo to his execs as he slashes costs

Anglo American's new chief executive, Mark Cutifani, has unveiled a dramatic recovery plan to slash costs, send expensive projects back to the drawing board and overhaul management at the troubled iron ore-to-diamonds miner.

The 55-year-old Australian challenged his executives to get their "arses into gear" to achieve a $1.3bn (£845m) a year boost to cash flow, as he announced a desperately poor set of first-half results yesterday.

Profit before one-off costs was shy of $3.3bn, which was 15 per cent down on the first six months of last year and symptomatic of a business that has seen its share price lose around 60 per cent of its value since 2011. Revenue fell 1 per cent to $16.2bn.

Mr Cutifani, who instigated a highly detailed review of Anglo as soon as he succeeded the much-criticised Cynthia Carroll in April, said: "You've got to have renewal and I'm part of that renewal process. I'm the only new face, therefore I bring [a different] perspective."

However, Mr Cutifani has drafted in a trusted lieutenant from his previous company, AngloGold Ashanti, as part of a revamp that sees 10 business units consolidated into just six in an effort to cut out bureaucracy.

Tony O'Neill has been made group technical director, as part of what Mr Cutifani said is the "most international" leadership team among the major miners.

Tough talk: Going like the kloppers

The ultra-macho league of leaders that runs the world's biggest mining groups lost arguably its most outspoken character when Marius Kloppers stepped down as BHP Billiton boss this year.

While Mr Cutifani is unlikely to jokingly threaten to kill a divisional head in front of the press, yesterday's media call at least showed that he's got a talent for providing a meaty quote. As well as saying Anglo's executives must get their "arses into gear", he also spoke of a "constipated" project pipeline and "unacceptably poor" performance.

Mr Cutifani also spoke of getting more "discipline" in the business, a skill likely to have been developed through raising seven children.

Suggested Topics
Start your day with The Independent, sign up for daily news emails
News
The two faces revealed by the ultraviolet light
newsScholars left shaken after shining ultraviolet light on 500-year-old Welsh manuscript
News
Rosamund Pike played Bond girld Miranda Frost, who died in Die Another Day (PA)
news
Arts and Entertainment
books
News
newsHow do you get your party leader to embrace a message and then stick to it? With people like this
ebooks
ebooksA special investigation by Andy McSmith
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Ashdown Group: Marketing Manager - B2B, Corporate - City, London

£45000 - £50000 per annum + benefits : Ashdown Group: A highly successful, glo...

Neil Pavier: Commercial Analyst

£50,000 - £55,000: Neil Pavier: Are you a professionally qualified commercial ...

Loren Hughes: Financial Accountant

£45,000 - £55,000: Loren Hughes: Are you looking for a new opportunity that wi...

Sheridan Maine: Finance Analyst

Circa £45,000-£50,000 + benefits: Sheridan Maine: Are you a newly qualified ac...

Day In a Page

General Election 2015: The masterminds behind the scenes

The masterminds behind the election

How do you get your party leader to embrace a message and then stick to it? By employing these people
Machine Gun America: The amusement park where teenagers go to shoot a huge range of automatic weapons

Machine Gun America

The amusement park where teenagers go to shoot a huge range of automatic weapons
The ethics of pet food: Why are we are so selective in how we show animals our love?

The ethics of pet food

Why are we are so selective in how we show animals our love?
How Tansy Davies turned 9/11 into her opera 'Between Worlds'

How a composer turned 9/11 into her opera 'Between Worlds'

Tansy Davies makes her operatic debut with a work about the attack on the Twin Towers. Despite the topic, she says it is a life-affirming piece
11 best bedside tables

11 best bedside tables

It could be the first thing you see in the morning, so make it work for you. We find night stands, tables and cabinets to wake up to
Italy vs England player ratings: Did Andros Townsend's goal see him beat Harry Kane and Wayne Rooney to top marks?

Italy vs England player ratings

Did Townsend's goal see him beat Kane and Rooney to top marks?
Danny Higginbotham: An underdog's tale of making the most of it

An underdog's tale of making the most of it

Danny Higginbotham on being let go by Manchester United, annoying Gordon Strachan, utilising his talents to the full at Stoke and plunging into the world of analysis
Audley Harrison's abusers forget the debt he's due, but Errol Christie will always remember what he owes the police

Steve Bunce: Inside Boxing

Audley Harrison's abusers forget the debt he's due, but Errol Christie will always remember what he owes the police
No postcode? No vote

Floating voters

How living on a houseboat meant I didn't officially 'exist'
Louis Theroux's affable Englishman routine begins to wear thin

By Reason of Insanity

Louis Theroux's affable Englishman routine begins to wear thin
Power dressing is back – but no shoulderpads!

Power dressing is back

But banish all thoughts of Eighties shoulderpads
Spanish stone-age cave paintings 'under threat' after being re-opened to the public

Spanish stone-age cave paintings in Altamira 'under threat'

Caves were re-opened to the public
'I was the bookies’ favourite to be first to leave the Cabinet'

Vince Cable interview

'I was the bookies’ favourite to be first to leave the Cabinet'
Election 2015: How many of the Government's coalition agreement promises have been kept?

Promises, promises

But how many coalition agreement pledges have been kept?
The Gaza fisherman who built his own reef - and was shot dead there by an Israeli gunboat

The death of a Gaza fisherman

He built his own reef, and was fatally shot there by an Israeli gunboat