Anglo American, a major UK mining company, to sell off De Beers diamond firm

UK mining giant Anglo American has made headlines after rejecting a £34bn bid from rival BHP and announcing plans to break up the business. The company revealed that it will sell or demerge major parts of the firm, including its De Beers diamond operation and its platinum division.

Anglo American stated that these “radical changes” will allow the company to focus on key areas such as copper, premium iron ore, and crop nutrients. The demand for copper is on the rise as countries transition to renewable energy and electric vehicles.

A potential deal with Australian firm BHP would create the world’s largest copper producer, but it could face significant competition hurdles. Anglo owns copper mines in Chile and Peru, where BHP also operates.

Despite two bids from BHP, Anglo laid out its own strategy, which includes demerging its platinum mining arm, Amplats, and retaining its Kumba Iron Ore business. The company also plans to keep its crop nutrients businesses but reduce investment in certain areas.

Anglo American’s chief executive, Duncan Wanblad, described these actions as the most radical changes the company has seen in decades. The decision to reject BHP’s bid and pursue its own restructuring aims to position the business to benefit from the global shift to clean energy.

In response to concerns about its historical ties, De Beers, founded in 1888 by Cecil Rhodes, stated that Rhodes does not represent the company today. Anglo’s plans also aim to lower costs by $1.7bn and support national priorities in countries where it operates.

Following the announcement, Anglo American’s share price fell by 2.6% to £26.30, reflecting the market’s reaction to the proposed changes in the mining giant’s business structure.