Anglo American may consider deeper cost cuts due to weak markets

Chief Executive of the Anglo America Group, Duncan Wanblad. (Photo by RODGER BOSCH / AFP)

Chief Executive of the Anglo America Group, Duncan Wanblad. (Photo by RODGER BOSCH / AFP)

Published Feb 6, 2024

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Anglo American may consider deeper cost-cutting measures unless market conditions improve after a fall in prices for platinum group metals (PGM) and a cyclical downturn that is the worst in 35 years, CEO Duncan Wanblad said on Monday.

The diversified miner announced sweeping cuts last year to save about $1.8 billion (R34bn currently).

Speaking on the sidelines of the African Mining Indaba in Cape Town, Wanblad told Reuters in an interview he did not see signs of any early recovery in the PGM industry, although diamond prices showed signs of strengthening.

“To the extent that market conditions continue, we will have to cut deeper and we will just knuckle down and get it done,” Wanblad said.

Platinum fell below $840 an ounce in November last year, the lowest since September 2022, while costs for producers have risen, especially in South Africa, which has some of the oldest and deepest platinum mines.

- Reuters