Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Anglo American Plc warned that global commodity supplies will remain vulnerable to severe disruptions, including from extreme weather that’s having a growing impact on operations around the world.
The mining industry has been struggling to hit production targets, hurt by everything from floods and droughts to creaking infrastructure and political instability. Those setbacks are exacerbating already tight supplies in several metals and minerals, at a time when demand in top consumer China is expected to rebound as the country emerges from Covid-19 lockdowns.
Anglo last year warned that output in 2023 and 2024 would be lower than previously expected. While the company wasn’t alone — other big producers also had operational disappointments last year — the setbacks marred new chief executive officer Duncan Wanblad’s first year in charge.
Anglo believes it can get back to more consistent operations, but the industry as a whole faces challenges going forward, the CEO said in an interview in Cape Town on Monday.
“The effects of climate change are very real and we are seeing it,” Wanblad said. “There were weather impacts on operations, pretty much all over the globe, and I think that will continue to happen.”
(By Thomas Biesheuvel)
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