Anglo’s plan to sell De Beers complicated by diamond output cut – by Thomas Biesheuvel and William Clowes (Bloomberg News – July 18, 2024)

https://www.bnnbloomberg.ca/

(Bloomberg) — Anglo American Plc is looking at more diamond production cuts as the industry continues to struggle, complicating its plan to sell the De Beers unit as part of a radical overhaul of its business.

Anglo announced the restructuring earlier this year as part of a successful rebuttal of a US$49 billion approach from BHP Group, the world’s the biggest miner. That plan centered around exiting diamond mining by spinning off or selling its De Beers unit, separating platinum and selling its coal mines.

Yet the miner is facing headwinds at all those businesses. A fire and explosion at its flagship coal mine in Australia has complicated that sale process, while the diamond market continues to languish, deterring potential buyers of the unit. Anglo also signaled a further profit slump at its platinum business today.

For the rest of this article: https://www.bnnbloomberg.ca/investing/2024/07/18/anglo-plans-to-cut-more-diamond-output-amid-slow-recovery/