JOHANNESBURG – Global mining firm Anglo American (AAL.L) plans to lower costs at its iron ore mines in South Africa and Brazil after boosting its total annual output for the steelmaking ingredient, sending its shares up 9 percent.
Anglo American is battling low commodity prices and slowing growth in top copper consumer China that have forced mining companies around the world to cut spending to preserve cash.
The company has suffered more than its rivals as it has higher-cost iron ore operations than larger competitors BHP Billiton (BLT.L) (BHP.AX) and Rio Tinto (RIO.L) (RIO.AX).
Anglo has said it would sell assets, suspend dividends until the end of 2016 and whittle its business down to three divisions to cope with the severe fall in commodity prices.
Anglo’s Kumba Iron Ore (KIOJ.J) said on Thursday it would scale back operations, cut costs and planned to reduce jobs at its flagship Sishen mine in South Africa, the largest iron ore operation in Africa.
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