African Continent's Key Minerals: Anglo American CEO Duncan Wanblad said that despite the restructuring, Africa remains "the best choice"

¬ Anglo American is divesting its platinum and diamond businesses, including 85% of De Beers shares, to focus on copper, iron ore, and crop nutrients

¬ The company's CEO Duncan Wanblad reiterated that Africa remains central to future growth, with its key mineral reserves accounting for about 30% of the global total

¬ The company is seeking a $5 billion merger with Teck Resources to become one of the world's top five copper producers

Anglo American announced a restructuring plan in May 2024, focusing on copper, iron ore, and crop nutrients. The company stated that this shift requires separating from its platinum and diamond divisions mainly located in Africa.

This mining company has spun off Anglo Platinum (now Valtola Platinum) and is proceeding with the sale of its 85% stake in De Beers. The diamond division's operations are concentrated in Botswana, Namibia, and Angola.

The company's CEO Duncan Wanblad insisted that, despite a smaller footprint in Africa, Africa remains crucial. According to Reuters, Duncan Wanblad said, "From the perspective of the world's demand for minerals, I believe Africa is the best choice. I hope we can reach the scale in Africa within two years."

Analysts pointed out that Africa holds about 30% of the world's key mineral reserves. Countries like the Democratic Republic of Congo and Zambia supply strategic copper, while Guinea is advancing the massive Simandou iron ore project.

After adjusting its asset portfolio, Anglo American will continue to retain its Kumba Iron Ore division, which operates the Sishen mine and manganese operations in South Africa. Additionally, the group plans to expand its copper mining business through projects such as the joint venture established in 2023 with Zambian Akkermann Mining. According to the terms of the agreement, Anglo American will invest approximately $30 million to acquire a 70% stake in the ZCP Exploration Project in Zambia.

The company has not yet detailed its near-term expansion strategy in Africa. However, since September, the company has been advancing its merger with Canadian mining company Teck Resources. The transaction is expected to be completed within 12 to 18 months, creating Anglo-Teck Group, which will have a valuation exceeding $5 billion and rank among the world's top five copper producers.

Sources: ecofinagency

Original: www.toutiao.com/article/1845569481931850/

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