Mining mammoth Anglo American, which holds 85 percent of De Beers' shares, does not aim to sell or spin-off the diamond miner in the coming two years at least, said CEO Mark Cutifani. "On a one-to-two year view, it is not part of the plan," to remove diamonds or its platinum businesses, he told analysts at an Anglo American investor day. "If [upon] getting them to their potential, the market is not giving us credit" for those businesses, then we can think about other strategic alternatives, he said.
Mining industry analysts had suggested that Anglo American could secure better returns for its shareholders from its majority stakes in De Beers and Anglo American Platinum Ltd., the world's largest platinum producer, by way of a spin-off or selling its shares in the firms.
Cutifani, also the chairman of De Beers, said that "in the medium to longer term, all options remain on the table," but "there are so many opportunities to get those assets delivering to their potential that it would be wrong for us to run out."
Its diamond assets were responsible for 17.5 percent of Anglo American's underlying profit of $3.26 billion in the first half of 2013, while its platinum business accounted for 5.7 percent.
Anglo is restructuring its loss-making platinum operations in a bid to cut costs and increase profitability. It aims to slash 7,450 jobs and wants to mechanize more of its operations.
