Anglo American has written down the value of its troublesome Mina-Rio project in Brazil by $4 billion (£2.5 billion) after delays and rising labour costs.
The company said the expense of running the iron-ore mine it bought five years ago is expected to reach a total of $8.8 billion.
Analysts said the project had been a “constant disappointment” since it was acquired from Brazilian billionaire Eike Batista for $5.5 billion in 2008.
Mina-Rio has been described as Cynthia Carroll’s greatest gamble during her time as chief executive. She is leaving in April after investors called for a change of leadership.
“We are disappointed that the diversity of challenges our Minas Rio project has faced has contributed to a significant increase in capital expenditure,” she said today. “Despite the difficulties, we remain committed to the project.”
Carroll will be succeeded by Mark Cutifani of AngloGold Ashanti.