/ 30 April 2009

Anglo tackles economic crunch head-on

Anglo American, one of the world’s largest mining companies, has taken proactive steps to help it over the current global economic conditions, it said on Thursday.

Measures to enhance financial flexibility and strengthen its balance sheet included securing $4,7-billion of new financing and issuing a $2-billion bond ”with strong demand and priced at bottom of range”.

It also issued a $1,7-billion bond which had seen firm demand and a $1-billion Brazilian Development Bank loan was finalised to finance the Minas-Rio iron ore project.

The company said total cash proceeds of $1,8-billion had been secured from the sale of a residual stake in AngloGold Ashanti.

Anglo American also had undrawn committed bank facilities and cash at over $9-billion.

”Anglo American has taken a series of proactive measures in response to the current economic environment and is positioned strongly to weather those conditions and to deliver long-term shareholder value through its existing operations and its well-funded growth pipeline of world class development projects,” it said. — Sapa