Diversified mining company Anglo American will sell noncore assets, including Scaw Metals, to focus on its core mining activities, the group announced on Thursday, when it also revealed a management reorganisation, which will see three top executives leaving the company.

The group, which appointed Sir John Parker as chairperson in August, would sell steel group Scaw Metals, Brazilian phosphate fertilisers and phosphoric acid producer Copebrás and Brazilian ferroniobium producer Catalão.

Scaw Metal's main operations are located in South Africa, South America, Canada and Australia, with smaller operations in Namibia, Zimbabwe and Zambia.

The company produced 771 000 t of steel products in South Africa and 879 000 t internationally, generating earnings before interest, tax, depreciation and amortisation (ebitda) of $309-million in 2008.

Anglo American would also sell its zinc portfolio, which includes the Skorpion mine in Namibia, the Lisheen mine in Ireland and the 74%-owned Black Mountain mine and the Gamsberg project in South Africa.

Duncan Wanblad, as group director noncore assets, would manage the portfolio as a standalone unit. Preparatory work for the separation of these businesses, which together with Tarmac accounted for 11% of the group's ebitda in the 2008 financial year, had started.

Last year, the mining giant announced its intention to sell ready-mix concrete and aggregate supplier Tarmac Iberia to Holcim Spain for up to $230-million.

In the past three years, the group sold its shareholdings in AngloGold Ashanti, Highveld Steel & Vanadium, Namakwa Sands, Tongaat Hulett and Hulamin. It also completed the demerger of the Mondi Group.

REMOVING A LAYER OF MANAGEMENT

Meanwhile, CEO Cynthia Carroll announced that Anglo American would make portfolio changes and reorganise its management to focus on its core mining activities.

Seven commodity business units were being created, with management teams located in the area of core geographic focus. The business unit CEOs and group directors would report to Carroll and together with her, would form the group executive committee.

Anglo American would cut overhead staff by 25% and hoped to save about $120-million a year by removing a layer of global management.

In Australia, the group would set up a metallurgical coal business unit and in South Africa, it would create a thermal coal business unit.

Norman Mbazima, who was appointed as Scaw Metals CEO in 2008, would lead the thermal coal unit, while Ian Cockerill, who joined the group from Gold Fields last year as Anglo Coal CEO, was leaving the company.

The metallurgical coal business unit would be led by Seamus French.

Anglo American's platinum business unit would be headed by Anglo Platinum CEO Neville Nicolau, who is based in South Africa.

John MacKenzie would lead the copper unit in Chile, while Walter De Simoni is in charge of the nickel business unit in Brazil.

Kumba Iron Ore in South Africa would continue to be headed by Chris Griffiths and the newly created Iron Ore Brazil would be led by Stephan Weber.

The group also announced that executives Philip Baum and Russell King were leaving Anglo American.

By removing a layer of management, the group is hoping to creating a "more effective, simple and efficient" organisation, with greater clarity over decision making and greater speed of implementation.

"I believe that these growth actions will position Anglo American well for sustained, profitable growth in the commodities we have identified as being the most attractive," commented Carroll.