Anglo American takes $2.3 billion De Beers hit as restructuring deepens

Anglo American has booked another heavy writedown on its diamond unit, underscoring the strain its legacy businesses continue to place on earnings as the group pushes through a sweeping overhaul. The miner reported a pre-tax impairment of $2.3 billion tied to De Beers, contributing to a loss attributable to equity shareholders of $3.7 billion. The charge comes as the company works to reshape its portfolio after fending off an approach from BHP Group in 2024.

Shift to copper, dividend cut

In response to that pressure, Anglo American laid out a plan to exit diamonds, coal and platinum, while sharpening its focus on copper and iron ore. It has also agreed to combine with Teck Resources to build a larger copper business, a move that reflects growing demand for metals tied to electrification. The transition, however, remains uneven. Anglo is still exposed to diamonds and coal, both of which are facing setbacks. The global diamond market has slowed sharply, while operations at two of its key coal mines have been disrupted by fires.

Even so, the company reported underlying earnings from continuing operations of R101.9 billion, equivalent to about $6.35 billion, a 2 percent increase from a year earlier. It reduced its final dividend by 27 percent, reflecting a more cautious approach to cash returns as restructuring continues. Copper and iron ore remained the main contributors to earnings, reinforcing their role in Anglo’s future mix. Net debt fell to $8.6 billion from $10.6 billion in 2024, supported by proceeds from the sale of its remaining stake in Valterra Platinum. Further asset sales are expected to help reduce debt.

Anglo reshapes portfolio, Teck copper deal

Anglo has already separated its South African platinum business but is finding it harder to exit diamonds and coal. It has also slowed development of its UK fertiliser project as it reassesses capital allocation. The company said it reached an investment agreement with Mitsubishi Corporation that could see the Japanese group take a 25 percent stake in the Woodsmith fertiliser project, providing fresh funding as development plans are reviewed.

Investor attention remains on the proposed tie-up with Teck. Anglo’s shares have risen more than 50 percent over the past year, helped by stronger copper prices. The deal would give Anglo access to Teck’s copper portfolio, including the Quebrada Blanca mine in Chile, which sits near its Collahuasi operation. Shareholders of both companies have approved the transaction, with regulatory clearances still in progress.

Anglo rebuilds, focuses on future metals

Chief executive Duncan Wanblad said 2025 marked a turning point for the company as it simplified its structure and moved to build a stronger position in metals linked to future demand. He said underlying EBITDA from continuing operations rose to $6.4 billion, while cost savings reached a $1.8 billion run-rate. Wanblad added that early proceeds from asset sales are helping strengthen the balance sheet, alongside a focus on cash generation.

Anglo has completed the demerger of Valterra Platinum and continues to advance the sale of its coal and nickel units, while progressing plans to separate De Beers. Wanblad said the proposed combination with Teck represents a key step, with the combined group expected to derive over 70 percent of its value from copper. Following approval under Canada’s investment rules, the company is working to secure the remaining regulatory clearances needed to complete the deal.