Second year of losses for Anglo-American

 

Deputy Business Editor

Fresh strikes by platinum miners in South Africa and losses related to Anglo American’s nickel business in Brazil left the mining giant unable to avoid a second year of straight losses.

Under its new chief executive, Mark Cutifani, Anglo is in the middle of a turnaround plan that will see it mothball unprofitable platinum mines and cut thousands of jobs.

Although its South African-listed platinum division Amplats returned to the black last year after violent strikes 18 months ago, Mr Cutifani warned that a new wave of pay disputes that started last month could hit profits again this year. The company wrote $1.9bn (£1.1bn) off the value of its mines last year.

“We still have a lot of work to do,” Mr Cutifani said. He stressed that the company had to hold its ground on the labour negotiations to secure the long-term viability of South African platinum mining. The dispute involves mines owned by Anglo, Lonmin and Impala Platinum.

Anglo’s 7 per cent fall in underlying profits to $2.7bn was in stark contrast to its rival Rio Tinto, which this week returned to profit, proving that it was recovering faster from the financial crisis.

Anglo’s spending is expected to peak this year at $7bn to $7.5bn, mainly due its Minas Rio iron ore project in Brazil

Meanwhile De Beers, the diamond group 85 per cent owned by Anglo American, said yesterday that prices are set to rise. According to De Beers’ index of its own rough diamonds, prices have gained 2 per cent since the start of the year. Underlying profits in 2013 were up more than a third.

The world’s largest diamonds group predicted that the economic improvement would strengthen jewellery sales this year, albeit only slightly as strong demand in the US and China looks set to be partially offset by weakened demand in India.

Full-year production of diamonds rose 12 per cent last year to 31.2 million carats from 27.9 million in 2012, highlighting the reason why Anglo upped its stake in the business the previous year.

Start your day with The Independent, sign up for daily news emails
PROMOTED VIDEO
ebooks
ebooksA special investigation by Andy McSmith
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

Recruitment Genius: Software Development Manager

£40000 - £50000 per annum: Recruitment Genius: This is an exciting opportunity...

Ashdown Group: Product Manager - (Product Marketing, Financial Services)

£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...

Recruitment Genius: Compliance Assistant

£13000 per annum: Recruitment Genius: This Pension Specialist was established ...

Ashdown Group: Market Research Executive

£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...

Day In a Page

Isis hostage crisis: The prisoner swap has only one purpose for the militants - recognition its Islamic State exists and that foreign nations acknowledge its power

Isis hostage crisis

The prisoner swap has only one purpose for the militants - recognition its Islamic State exists and that foreign nations acknowledge its power, says Robert Fisk
Missing salvage expert who found $50m of sunken treasure before disappearing, tracked down at last

The runaway buccaneers and the ship full of gold

Salvage expert Tommy Thompson found sunken treasure worth millions. Then he vanished... until now
Homeless Veterans appeal: ‘If you’re hard on the world you are hard on yourself’

Homeless Veterans appeal: ‘If you’re hard on the world you are hard on yourself’

Maverick artist Grayson Perry backs our campaign
Assisted Dying Bill: I want to be able to decide about my own death - I want to have control of my life

Assisted Dying Bill: 'I want control of my life'

This week the Assisted Dying Bill is debated in the Lords. Virginia Ironside, who has already made plans for her own self-deliverance, argues that it's time we allowed people a humane, compassionate death
Move over, kale - cabbage is the new rising star

Cabbage is king again

Sophie Morris banishes thoughts of soggy school dinners and turns over a new leaf
11 best winter skin treats

Give your moisturiser a helping hand: 11 best winter skin treats

Get an extra boost of nourishment from one of these hard-working products
Paul Scholes column: The more Jose Mourinho attempts to influence match officials, the more they are likely to ignore him

Paul Scholes column

The more Jose Mourinho attempts to influence match officials, the more they are likely to ignore him
Frank Warren column: No cigar, but pots of money: here come the Cubans

Frank Warren's Ringside

No cigar, but pots of money: here come the Cubans
Isis hostage crisis: Militant group stands strong as its numerous enemies fail to find a common plan to defeat it

Isis stands strong as its numerous enemies fail to find a common plan to defeat it

The jihadis are being squeezed militarily and economically, but there is no sign of an implosion, says Patrick Cockburn
Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action

Virtual reality: Seeing is believing

Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action
Homeless Veterans appeal: MP says Coalition ‘not doing enough’

Homeless Veterans appeal

MP says Coalition ‘not doing enough’ to help
Larry David, Steve Coogan and other comedians share stories of depression in new documentary

Comedians share stories of depression

The director of the new documentary, Kevin Pollak, tells Jessica Barrett how he got them to talk
Has The Archers lost the plot with it's spicy storylines?

Has The Archers lost the plot?

A growing number of listeners are voicing their discontent over the rural soap's spicy storylines; so loudly that even the BBC's director-general seems worried, says Simon Kelner
English Heritage adds 14 post-war office buildings to its protected lists

14 office buildings added to protected lists

Christopher Beanland explores the underrated appeal of these palaces of pen-pushing
Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

Scientists unearthed the cranial fragments from Manot Cave in West Galilee