But in the last 12 months, especially since February, the price of Anglo shares was lower than in the group of equal companies - BHP Billiton, Rio Tinto and Glencore.
Analysts believe that the company is moving in the right direction, but there are concerns about the impact of South Africa on the company, delays in getting rid of non-core assets and whether the group should even engage in iron ore, even if the Minas-Rio mine, Now is operational.
If the sale of all proposed parts of assets in South Africa, for example, the mines for the extraction of platinum and coal, Anglo American in South Africa may look a little "oversaturated by high-level specialists." Do you consider the question of how to carry out a restructuring, or is it a cyclically recurring process?
We are rebuilding our business and increasing its competitiveness. The difficulty of our real situation is that in South Africa is very high inflation, and in order to compete, we must reduce our overheads and other costs. Yes, as the portfolio of objects is being restructured, there will be a need to change the infrastructure necessary to maintain these enterprises for mining, so an element of "optimization of forces" will be required. Of course, any changes in the structure of the organization will be undertaken with full consultation with all relevant shareholders.
Regarding the sale of assets, I believe that a balanced decision is made on the cost of production, in contrast to the adoption of a discount, because you make "short" sales of assets with low profits during the excess supply of many minerals. Is this a precise description of the difficulty of selling a part of the assets or are you ready for a long-term capital outflow program?
"Short" sale, low profits? I'm not sure that I would agree with you on this issue. These are good assets that create cash; Rather, we can say that they do not fit into our plans for the future, and I think that they will be better used by the other owner. It can not be denied that there are constraints in terms of commodity prices. In this case, it is necessary to balance the speed and ensure the appropriate cost. We did not hesitate in making decisions when managing our costs in order to protect profits, including the assets that we sell, and we continue to actively pursue this. Investors expect us to achieve a reasonable cost for these assets, but at the same time continue the restructuring to ensure that our strategic goals are achieved.
More precisely, it is assumed that the first transaction for the newly established company South32 was the purchase of Anglo's stake from its stake in Samancor, that is, you can assume that you agree that the sale of non-controlling interest in companies with low performance is part of the strategy ?
The sale of our shares in Samancor is unlikely at the moment. We like manganese ore, we like our position, and we think to continue everything as is. It creates a 20% return on working capital (ROCE), so it fits well with our goals for the overall business structure.
Do you think that the possible listing of the assets of the Rustenburg project is an unpopular idea, partly judging by the fact that you will have to ask investors to buy assets that other mining companies would not have bought?
We are still evaluating the best course of action for the Rustenburg and Union projects. We have already done a lot of work on the reconstruction of these mines in order to turn them into a stable independent business, profitable and enabling the creation of cash. They have already shown interest, and, as I said earlier, we are interested in selling only at a good price. We are still evaluating which way to choose, and we will announce this in the middle of the year.
You spoke frankly about the regulatory regime in mining in South Africa. Do you think that the revision of the mountain charter, the repeal of the law on the development of mineral resources and oil and the confusion created by the possible articulation of the policy of involving the black majority in the economy with the mountain charter made mining in South Africa an area not available for investment by foreign Investors?
I think that the word "confusion" is in this case key in the sense that it is the uncertainty surrounding this that creates a barrier to foreign investors. Foreign capital has a great choice in terms of its application, and the secret of success is that you create a stable and safe environment for this capital. South Africa is a major mining jurisdiction in terms of its resources and its legislative system. This is an industry that already makes a significant contribution to assisting the government in achieving its goals as defined by the National Development Plan, and it can give even more. But this is a capital-intensive industry with long-term investments, and we all need to reach a consensus on how to ensure the certainty necessary to attract capital.
http://www.miningmx.com/page/special_reports/mining-yearbook/mining-yearbook-2015/1652947-Mark-Cutifani-We-are-rebuilding-Anglo-American#.VbpFOPntmkq
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