Anglo American Eyes M&A Opportunities In Base Metals

LONDON, Jan 20, 2009 (Dow Jones Commodities News via Comtex) -- Diversified global miner Anglo American PLC (AAUK) is looking at opportunities to buy assets while prices hit cyclical lows, according to a company presentation Tuesday in London. Anglo American is "currently looking at opportunities to acquire assets at the bottom of the cycle," Brian Beamish, chief executive for Anglo's base metals division, said in the presentation. The base metals investors seminar was closed to the press but slides were posted on the company's Web site. "(The) current market may offer opportunities to acquire capacity for less than it would cost to build, but a continued disciplined approach to M&A is required," Beamish added. Anglo American also continues to develop its project pipeline and is considering moves into new commodities such as titanium, he said. Anglo American said in December that it would cut its 2009 capital spending by more than half, including deferring its Los Bronces copper expansion in Chile by eight months and the Barro Alto nickel project in Brazil by a year. The cutbacks reflect weaker prices for copper, nickel, zinc and other commodities as demand slows while the global economy cools. Beamish said the company's project pipeline is set to deliver increased production of copper and nickel from 2011. At 1131 GMT, Anglo's shares were up 0.5%, or 7 pence, at 1341 pence, roughly in line with a flat mining sector.