Mining Journal > Finance > Record profit for Anglo American

Anglo American plc has announced record group operating profits of US$11.1 billion for 2011, a year in which it completed a number of major projects on or ahead of schedule.

The group commissioned nine growth projects on time or ahead of schedule, and together with newly-approved projects, they were expected to deliver 35% volume growth by 2014.

However,  Anglo American noted 17 employees had lost their lives during 2011. Frequency rates of time lost due to injury, excluding the Anglo Platinum unit, fell by 16%. Anglo American has recorded a downward trend in the measure since 2007, despite a disappointing performance in 2011 at Anglo Platinum particularly, which recorded 12 fatal accidents.

In its outlook the company said it is expecting to approve US$16 billion of projects over next three years. The group described its US$5.4 billion sale of a minority 24.5% interest in the Chilean Anglo American Sur copper assets, a deal that has been vociferously challenged by its partner in the assets, Chile’s state-owned Codelco, as highlighting the value and quality of its asset base.

The company confirmed its 26.5Mt/y Minas-Rio iron-ore project in Brazil was progressing well. The group expected first ore-on-ship from the project in 2013, and was implementing measures to mitigate various site challenges related to high inflation in the Brazilian mining industry.

The US$5.1 billion acquisition of up to 40% interest in De Beers, announced during the year, was a “unique opportunity to consolidate control of the world’s leading diamond company,” said the company in its results.