Anglo American plc
Anglo American plc is a British multinational mining company headquartered at 17 Charterhouse Street in London, focused on the production of copper, premium iron ore, platinum group metals, diamonds, and crop nutrients.[1][2] Founded in 1917 by Ernest Oppenheimer as the Anglo American Corporation of South Africa to develop diamond and gold resources, it expanded through strategic investments and mergers, including becoming the largest shareholder in De Beers in 1926 and merging with Minorco in 1999 to form the current plc structure listed on the London Stock Exchange.[3][3] The company maintains an 85% ownership in De Beers, the world's leading diamond producer, and operates major assets across South Africa, Brazil, Australia, Chile, and other regions, employing advanced technologies for resource extraction and processing.[4][5] Anglo American's portfolio supports essential industries, from steelmaking to electronics and agriculture, while pursuing cost efficiencies and sustainability goals, such as $1.3 billion in savings achieved in 2024.[6][2]History
Founding and early expansion (1917–1990)
Anglo American Corporation of South Africa was founded in 1917 by Ernest Oppenheimer, a German-born entrepreneur, in Johannesburg, with initial capital of £1 million raised primarily from American investors including J.P. Morgan & Co. and other U.S. and U.K. sources, aimed at consolidating interests in the East Rand gold fields amid post-World War I economic opportunities.[7] The company quickly acquired stakes in established mining houses, securing control over four of the eleven major producers on the East Rand, which encompassed some of the world's richest gold-bearing reefs, enabling rapid scaling of output during the 1920s as global demand recovered.[8] By 1926, Anglo American had become the largest shareholder in De Beers Consolidated Mines, integrating diamond production from key South African sites like Kimberley into its portfolio, with Oppenheimer assuming the chairmanship of De Beers by 1929 to centralize sorting and marketing through the newly formed Diamond Trading Company in London and Kimberley.[3] This move solidified control over rough diamond supply chains, leveraging De Beers' dominance in the Kimberley and other fields to stabilize prices amid fluctuating output. Concurrently, gold operations expanded with investments in deeper shafts on the Witwatersrand, contributing to South Africa's emergence as the global leader in gold production, where Anglo's holdings underpinned much of the industry's mechanization and labor-intensive extraction methods.[3] Expansion into platinum began in 1928 through a partnership with geologist Hans Merensky, forming Johannesburg Consolidated Investments (JCI) to develop the Bushveld Complex deposits near Rustenburg, marking Anglo's entry into platinum group metals as a byproduct of initial discoveries in 1924.[3] By the mid-20th century, these Rustenburg operations evolved into core assets, with Anglo's broader activities—spanning gold output from ventures like Vaal Reefs (established 1944, later the world's largest gold mine by the 1980s) and community infrastructure such as the planned town of Welkom in 1950—generating thousands of jobs and supporting economic multipliers through supplier networks and rail developments in apartheid-era South Africa.[3] Despite operating within the restrictive labor and segregation policies of the time, Anglo's mines employed over 200,000 workers by the 1970s, primarily black South Africans in semi-skilled roles, fueling GDP contributions from mining that averaged 10-15% annually while funding state infrastructure via taxes and royalties, though company records emphasize self-reliant townships over systemic political endorsement.[3][9]Diversification and global growth (1990–2010)
In the 1990s, Anglo American responded to South Africa's post-apartheid transition by initiating restructurings to align with emerging empowerment policies and globalize operations, including the 1990 split of De Beers into international and South African entities to facilitate overseas listings and asset redistribution.[10] The pivotal shift occurred in 1999 with the formation of Anglo American plc, which listed on the London Stock Exchange on 24 May, alongside Johannesburg and Swiss exchanges, enabling broader access to international investors and reducing dependence on South African capital controls.[11] This restructuring supported partial unbundlings of select South African holdings to promote Black Economic Empowerment (BEE), allowing for increased local black ownership while preserving core mining assets.[12] The 2000s saw aggressive portfolio diversification through acquisitions and expansions beyond traditional gold and platinum, including the 2000 purchase of Tarmac, which added aggregates and ready-mixed concrete operations in the UK and diversified revenue into construction materials.[13] In 2003, Anglo acquired a controlling stake in Kumba Resources, enhancing iron ore output primarily from South Africa's Sishen mine, with production ramping up to support global steel demand.[14] Further growth targeted coal via Colombian venture restructurings yielding higher equity shares and nickel through Brazilian developments like Codemin, while maintaining a 45% stake in De Beers for diamond exposure; these moves spread risk across commodities amid volatile gold prices.[13][15] Platinum group metals production via Anglo Platinum peaked in the late 2000s, with refined output rising from approximately 2.4 million ounces in 2000 to over 2.5 million by 2007, driven by expanded Rustenburg and Mogalakwena operations.[16] This era's diversification fueled financial expansion, with underlying earnings climbing to $5.5 billion in 2006—a 46% year-over-year increase—and operating profits hitting $9.8 billion by 2007, reflecting contributions from iron ore, coal, and base metals alongside legacy PGMs and diamonds.[14] By 2010, non-South African assets comprised a growing share of earnings, underscoring the success of global outreach amid commodity supercycles.[17]Strategic challenges and restructuring (2010–present)
Following the end of the commodity supercycle around 2011, Anglo American faced significant pressures from declining prices across key metals and minerals, prompting a series of cost-cutting measures and portfolio rationalizations. By 2015, amid a prolonged downturn, the company announced a major restructuring plan that included divesting approximately 60% of its assets, eliminating up to 85,000 jobs, and suspending dividends to preserve liquidity and streamline operations toward higher-quality assets.[18][19] This initiative, led by CEO Mark Cutifani, targeted underperforming divisions such as nickel and niobium, while emphasizing cash-generative commodities like copper and platinum group metals, though execution faced delays due to market volatility.[19] In response to ongoing commodity cycles and the accelerating energy transition, Anglo American continued periodic asset reviews into the 2020s, divesting non-core holdings like its steelmaking coal business in Australia in 2023 to reduce exposure to thermal coal amid environmental and regulatory pressures.[20] A pivotal event occurred in April 2024 when the company rejected a £31.1 billion ($39 billion) unsolicited takeover bid from BHP Group, deeming it undervalued given Anglo's premium assets in copper and iron ore; BHP's subsequent revised offers, up to £34 billion, were also rebuffed, leading to the bid's termination in May 2024.[21][22] This episode catalyzed an accelerated restructuring strategy announced in May 2024, focusing on portfolio simplification by demerging Anglo American Platinum (Amplats), divesting De Beers (its diamond subsidiary), and exiting remaining thermal coal operations, thereby prioritizing copper, premium iron ore, and crop nutrients to align with demand for electrification and sustainable agriculture.[20][23] The restructuring's early impacts were evident in Anglo American's half-year results for 2025, released on July 31, which reported underlying EBITDA of $3.0 billion from continuing operations, driven primarily by robust performances in copper ($1.8 billion EBITDA at 48% margin) and premium iron ore (44% margin), despite broader challenges like diamond market weakness.[24] Copper production benefits stemmed from higher volumes at key mines like Los Bronces and Collahuasi, while iron ore strength reflected elevated prices for Kumba's high-grade exports.[25] Complementing this refocus, the company advanced plans for crop nutrients expansion via the Woodsmith polyhalite project in England, targeting full development to produce natural fertilizer from the world's largest known deposit, with optionality retained post-restructuring to capitalize on global food security needs.[26][24] These moves, including $1.8 billion in targeted cost savings by year-end, underscore a causal shift toward future-facing commodities amid geopolitical risks and energy demands, though divestment timelines for De Beers and Amplats extended into 2025 due to market conditions.[24][23]Operations and assets
Core commodities and production capabilities
Anglo American plc's production capabilities center on copper, premium iron ore, and crop nutrients, following a 2025 portfolio restructuring that demerged its platinum group metals (PGMs) business and divested thermal coal assets. Copper operations support global electrification and renewable energy infrastructure, with 2024 attributable production declining 6% year-on-year to support strategic optimizations, while select assets like Quellaveco achieved quarterly records amid ramp-up phases.[27][28] Iron ore output reached 60.8 million tonnes in 2024, driven by high-grade production from operations yielding low-impurity ore essential for efficient steelmaking decarbonization.[29] Crop nutrients capabilities, via the Woodsmith project, target polyhalite extraction—a naturally occurring multi-nutrient fertilizer—for sustainable agriculture, with development advancing toward commercial-scale output.[30] Prior to the June 2025 demerger of Valterra Platinum (formerly Anglo American Platinum), the company held world-leading PGM production capabilities, supplying metals critical for catalytic converters and emerging hydrogen technologies; its subsidiary produced 1.85 million ounces of platinum in 2024, representing a substantial share of global supply amid constrained reserves.[31] Diamond production, through an 85% stake in De Beers, historically provided industrial and gem-quality stones, though ongoing monetization efforts reflect a shift away from non-core assets.[32] These commodities underpin supply chains where geological scarcity and processing complexity limit substitutability, with copper and iron ore indispensably linking to energy transition demands—copper for conductive wiring in vehicles and grids, iron ore for low-carbon steel via direct reduction—necessitating reliable, scalable mining to meet empirical deficits in global inventories.[33]Key mining sites and subsidiaries
Anglo American's key mining subsidiaries include Anglo American Platinum Limited (Amplats), which manages major platinum group metals (PGMs) operations in South Africa, and De Beers Group, responsible for global diamond mining and sales, in which Anglo holds an 85% stake. As part of a broader portfolio restructuring announced in May 2024, Anglo initiated the divestiture of De Beers, with non-binding bids, including from Angola's state diamond entity, received by October 2025, aiming to refocus on copper, premium iron ore, and crop nutrients.[34][24] These subsidiaries integrate critical contributions to Anglo's overall mineral output, with Amplats accounting for a substantial portion of group PGM production and De Beers historically supplying over 30% of global rough diamonds by value prior to market shifts.[24] The Mogalakwena mine, operated by Amplats in South Africa's Limpopo Province, stands as the world's largest open-pit PGM operation and a strategic cornerstone for low-cost, large-scale extraction from the Platreef igneous complex. It features proved and probable ore reserves supporting a mine life extending to 2110, with recent production of 227,000 ounces of PGMs in Q1 2025 driven by increased concentrator throughput.[35][36] Plans for underground extensions target commencement by late 2024 to sustain reserves beyond current open-pit phases.[37] Internationally, the Quellaveco copper mine in southern Peru's Moquegua region, fully operational since 2022, represents Anglo's flagship greenfield copper development with 100% renewable energy supply and autonomous operations. It holds ore reserves of 1.7 billion tonnes grading 0.53% total copper, equating to 8.9 million tonnes of contained metal and a 36-year mine life, with first-decade output averaging 300,000 tonnes annually; expansions approved in 2025 aim to increase throughput via optimized crushing circuits.[38][39][40] The Minas-Rio iron ore project in Brazil's Minas Gerais state delivers high-grade pellet feed via an integrated open-pit mine, beneficiation plant, and 529 km slurry pipeline to export facilities, with a nameplate capacity of 26.5 million tonnes per year and a projected mine life of approximately 45 years. Recent enhancements include the December 2024 integration of the contiguous Serpentina deposit, adding multi-billion-tonne reserves of premium-grade ore, and a US$300 million investment approved in February 2025 for debottlenecking.[41][42][43] These sites underscore Anglo's emphasis on tier-1, long-life assets with expansion potential to underpin stable production amid global commodity demands.[24]| Asset | Location | Primary Commodity | Key Operational Metrics |
|---|---|---|---|
| Mogalakwena | South Africa | PGMs | Mine life to 2110; Q1 2025 output: 227 koz PGMs[36][44] |
| Quellaveco | Peru | Copper | 36-year life; 1.7 Bt reserves (8.9 Mt Cu); ~300 ktpa initial[39] |
| Minas-Rio | Brazil | Iron Ore | ~45-year life; 26.5 Mtpa capacity; Serpentina integration 2024[41][42] |