Cynthia Carroll, CEO, Anglo American
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Anglo sees metal prices remaining strong
Allan Seccombe
Posted: Tue, 17 Apr 2007

[miningmx.com] -- ANGLO American, which will sell its 42% stake in AngloGold Ashanti within two years, foresees base metal prices remaining strong for the foreseeable future, CEO Cynthia Carroll said on Tuesday.

In her maiden annual general meeting for the world’s third-largest resources companies, Carroll said she was introducing changes at the global company to complement the wide ranging restructuring begun by her predecessor Tony Trahar.

Anglo is selling and de-merging non-core assets, including paper and packaging business Mondi, AngloGold Ashanti and its South African steel and vanadium business.
significantly above long term equilibrium levels
“The board appointed me, as an outsider, to act as a catalyst for change and I intend to live up to that challenge,” Carroll said.

A management level has been removed, she said, as part of changes to the corporate structure to reduce bureaucracy and speed up decision making.

“I believe that the strong global growth we are seeing will provide a supportive climate for our business in 2007,” she said.

“Stocks of most of the major metals remain relatively low and there remain significant constraints within parts of the supply chain. Thus the outlook is for metals to remain significantly above long term equilibrium levels,” she said.

The restructuring plans will proceed apace this year, with the Mondi de-merger completed during July, subject to shareholder approval. The company will be dual listed in Johannesburg and London, with its headquarters in South Africa.

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Anglo has trimmed its holding in AngloGold Ashanti to 42% from 51%, generating income of $1bn last year.

“We will continue to explore all options that will enable us to exit AngloGold Ashanti in an orderly manner over the next two years,” Carroll said.

AngloGold Ashanti CEO Bobby Godsell has called for Anglo to make its exit quick and complete. Shares in the world’s third largest gold miner have underperformed the JSE gold index because of the overhang of shares in the market.

Anglo will realise $266m on the sale of its remaining 26% stake in Highveld Steel and Vanadium to Russia’s Evraz after European Union competition authorities approved the transaction in February. Credit Suisse and Evraz have each bought at 24.9% stake in Highveld for a total $412m.

“I should emphasise that the board see these disposals, and the greater focus and coherence they create, as a foundation upon which aggressively to grow our remaining core businesses,” Carroll said.

Anglo is opening offices in the Democratic Republic of Congo and India in addition to those opened in Moscow and Beijing.