Anglo American, in its recent reflection on the performance of 2023, has unveiled its expenditure and production projections for the next three years.
Duncan Wanblad, CEO of Anglo American, has underscored the company’s optimistic outlook as it looks ahead to 2024. Wanblad stated, “We are confident in our strategies to maintain the competitiveness of our world-class assets and capitalize on outstanding growth opportunities in metals and minerals that hold immense significance for both the present and future generations.”
He further emphasized, “Despite the challenges posed by high inflation, we anticipate achieving lower unit costs in 2024 and reducing capital expenditure by $1.8 billion in the period spanning from 2023 to 2026.”
With a notable three per cent production increase in 2023, Wanblad highlighted that the company is establishing a robust foundation for sustainable operational and financial performance. He explained, “In 2023, we took proactive measures to enhance our business resilience, given the ongoing economic and geopolitical uncertainties, along with the prevailing cyclical downturn in platinum group metals and diamonds.”
“As a result, we have already made substantial progress in reducing our business support costs by $500 million by mid-2024, and we have identified an additional $500 million in annual cost efficiencies across our global operations, which we anticipate realizing in 2024.”
Wanblad underscored the growing appeal of the overall supply and demand dynamics in the metals and minerals sector. He stated, “Many of the world’s leading economies are directing their efforts toward meeting global decarbonization targets. As the global population continues to expand, urbanize, and seek higher living standards, we anticipate an unprecedented demand for responsibly sourced raw materials.”
He concluded by stating, “We are enhancing our resilience and positioning ourselves to capitalize on the rising value of our business within the context of significant demand trends. This includes leveraging a well-sequenced portfolio of projects that enhance margins within Anglo American.”