Economic Facts and Data

Strategy revision

Anglo American’s results in 2009 were clearly lower than 2008. Therefore the company had to be focused on optimizing value for all its shareholders. The strategy was concentrated on reducing production costs in order to continue to show profits in light of new market conditions. With the impact from the financial crisis, administrative cost cuts were established and divulged during the first quarter of 2009. This resulted in a true taskforce comprised of the leadership and teams working in search of initiatives leading to cost savings in all daily plant and office routines.

Re-structuring and sale of assets

In October 2009, the Board of Directors of Anglo American decided to implement changes in the product portfolio and the organizational structure of the company for the purpose of concentrating activities in materials considered as strategic, and to attain greater decision-making flexibility. As a result of these changes, the global nickel business was located in Brazil and the sale of niobium and phosphate assets was announced, comprising Copebrás (Catalão/Ouvidor and Cubatão phosphate units) and Mineração Catalão (Ouvidor niobium unit).

This portfolio revision was based on supply and demand studies in the international arena and the improvement in Anglo American’s position among the world’s mining sector leaders. The company determined that respect for Anglo American’s values would be a prerequisite for the future owners of the two units. Until the sale occurs, Copebrás and Mineração Catalão will continue to be part of the Anglo American Group.