Cutifani to chair Anglo SA as national crisis grows

[miningmx.com] – ANGLO American has unveiled a string of management changes at its South African business following a corporate governance review – a turn of events it said underlined the importance to it of South Africa.

Mark Cutifani, CEO of Anglo American, will become chairman of Anglo American South Africa (AASA) following the resignation of Michael Spicer, whilst Norman Mbazima, CEO of Kumba Iron Ore, will become AASA’s deputy chairman.

Khanyisile Kweyama has resigned from AASA in order to focus on the leadership of Business Unity South Africa with Andile Sangqu, once an ally of Mick Davis when he was head of Xstrata, taking up her executive responsibilities.

The changes come amid efforts by Anglo American to exit some of its South African units such as the Rustenburg mines of Anglo American Platinum and its coal mines in Anglo Coal.

Crucially, however, the contribution from South African assets to Anglo American’s EBITDA will remain fairly static at about 37% of total following the divestments, assuming they materialise.

More likely the shift of Cutifani to AASA signals Anglo’s sense that the South African business climate has become more complex amid the power supply deficit and a turn for the worse in relations with the Department of Mineral Resources (DMR).

These challenges, and the prospect of a carbon tax, increasing empowerment demands, and negotiations over developmental pricing of minerals recently led South Africa’s Chamber of Mines to ask whether the country was a primary investment destination for investors in the natural resources industry.

“The key question is whether South Africa is still a preferred mining investment destination globally and in Africa or whether other jurisdictions are taking preference,” said Mike Teke, president of the chamber last week.

Said Cutifani regarding the management changes: “These are important changes and demonstrate Anglo American’s commitment to playing an active and leading role in the ongoing development of a responsible, sustainable and competitive business and mining sector in South Africa”.