Anglo American cuts capex

Diversified mining group Anglo American said it is rescheduling its projects worldwide, revising investments, and lowering production outlook as part of its plan to cap capital expenditure at $4.5 billion for 2009.

"We have have undertaken a thorough re-evaluation of our stay-in-business and development requirements... And made adjustments to prioritise expenditure in those areas where we expect relative outperformance in the near term," CEO Cynthia Carroll said in a statement.

Mining major Rio Tinto also last week decided to cut capital expenditure by more than 50 per cent for next year to ease its debt position amid falling commodity prices by over 60 per cent since the peak of early 2008.

Anglo American, which too lowered capital expenditure by more than half, said it has completed a review of its investment programme in recent weeks, at the time when the mining industry has experienced an unprecedented period of rapid declines in commodity prices due to global economic uncertainty.

"Such circumstances present a very different near term outlook and a clear need to adjust the Group's investment plans," the firm said.

The statement from the company said the group's capital expenditure programmes for 2010 would continue to be monitored against market conditions, prevailing and forecast.

However, Carroll said: "Anglo American is well positioned to weather the current weak economic conditions and continue to prosper for the benefit of all our stakeholders."

The largest producer of platinum in the world said the outlook for the metal has declined due to lower offtake from user industries including automobiles from countries like Japan, and European and North American nations.