Expansion plans for Moranbah South, Drayton South, Dartbrook and Foxleigh Plains look set to be shelved after Anglo American’s chief executive, Mark Cutifani, announced new austerity measures.
Speaking to The Australian, Cutifani said the $2 billion Grosvenor project, near Moranbah, which has incurred a $US250 million cost blowout, will be the last of any potential coking coal expansions for some time to come.
“It’s crazy to put volumes on a market that’s sliding the wrong way,” Cutifani said.
“We were a fair way down the road on Grosvenor, so we’ll finish and support that project, but I’m not looking to add volumes into a market that at the moment looks to be a little oversupplied.”
Cutifani has been set the task of adding $US3.5 billion of value to the company by 2016.
“We’ve got a lot of work to do and we’ve got to get our arses into gear and start making a real difference,” Cutifani said.
He explained asset sales would be considered but said he did not believe extensive changes are needed.
“We do not require wholesale change to our portfolio, but we do need to become much more disciplined, more effective and more efficient to drive a step-change in delivery to extract greater value and returns for our shareholders,” Cutifani said.
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