It's cutting 50,000 jobs
Close to £6bn was wiped off the value of global mining stocks and the FTSE 350 index of mining stocks in London fell to its lowest level in 11 years, after one of the world’s largest mining companies, Anglo American, announced a radical restructuring plan to address the price slump in precious metals.
The company said it would sell or close up to 35 mines and smelter plants over the next two years, leaving it with just 20.
Its 135,000 strong global workforce will be cut to about 50,000 and no dividend will be paid for at least 18 months
Anglo American is the world’s largest producer of platinum and also a major producer of iron ore, both of which have been hit by sharply reduced car production and construction activity in China.
Meanwhile the price of a barrel of Brent Crude oil dropped below $40 per barrel at one stage yesterday, its lowest level since February 2009.