On the cusp

31 July 2009 By Una Galani Follow @ugalani

Facing unwanted merger interest from rival Xstrata, the miner needed a boost. Its interim update was never going to be stellar. But it shows hard progress on cost cuts and growth projects. That gives credence to Anglo s claim to be entering a period of enhanced value creation.

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Anglo American said it had achieved $450m of cost savings in the first half of 2009 and forecast $1bn of savings in the full year as it posted interim results broadly in line with expectations.

The South African miner said that its three main growth projects in iron ore, nickel and copper were on track to come into production by 2011 and 2012.

Anglo is targeting $2bn of annual savings in procurement and asset optimisation by 2011.

In June, the group rebuffed a mergerofequals proposal from Xstrata, its Swiss rival, citing a lack of strategic logic in a combination.

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