Anglo hopes that by streamlining its portfolio it will be able to position itself favorably in the rapidly evolving mining sector, particularly as demand for materials critical to renewable energy and electric vehicles continues to rise.
Anglo plans to reduce its investment in its Woodsmith potash mine in North Yorkshire, England, as well.
In a media call, Wanblad expressed support for the growth strategy Anglo has developed for De Beers, but said the company thinks it is “better executed by different owners and in a different structure.”
Anglo American acquired De Beers in 2011, buying the Oppenheimer family’s 40 percent stake for US$5.1 billion.
Like other luxury goods, diamonds have experienced a decline in global demand. De Beers, which both mines diamonds and produces synthetic gems through its Lightbox Jewellery unit, has responded by limiting supply and offering flexibility to contracted customers. In February, Anglo announced a US$1.6 billion impairment charge on the division.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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