Share

Mixed reponses to Anglo resignation

Johannesburg - The resignation of Anglo American CEO Cynthia Carroll evoked mixed response on Friday.

The Public Investment Corporation (PIC) and Government Employees Pension Fund (GEPF) blamed Carroll for the company's lacklustre performance.

"Whilst depressed commodity prices are partly to blame for the group's disappointing performance, we believe that capital allocation, poor project management and poor operational performance have contributed the bulk of the observed underperformance of Anglo," they said in a statement.

They said Anglo underperformed when compared to peers since 2006 with regards to total shareholder return.

The PIC is the largest South African shareholder in Anglo and holds seven percent of its shares on behalf of the GEPF.

The two admitted it was easy to second-guess decisions made by Carroll with the benefit of hindsight.

"However, it is understandable that these strategic aspects will rest squarely on the CEO's shoulders," they said.

The PIC and GEPF said a "serious refocus" of the company was needed. This should include looking at the composition of the board to include more people from emerging markets, locations that were responsible for more of Anglo's activity.

Trade union Solidarity described Carroll's departure as a "huge loss" for the company and a "major setback" for the South African mining industry.

"Carroll continually championed South Africa's mining industry abroad," general secretary Gideon du Plessis said in a statement.

He argued that Carroll's resignation was a sign the industry was losing faith in South Africa.

"It is disturbing that key persons in the industry are losing faith in South Africa's mining industry," Du Plessis said.

He commended Carroll for being willing to make decisions, regardless of their popularity.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.98
-0.2%
Rand - Pound
24.08
+0.1%
Rand - Euro
20.59
+0.0%
Rand - Aus dollar
12.36
+0.5%
Rand - Yen
0.13
+0.6%
Platinum
904.45
+0.2%
Palladium
999.75
-0.6%
Gold
2,152.84
-0.4%
Silver
24.91
-0.5%
Brent Crude
86.89
+1.8%
Top 40
65,923
-0.5%
All Share
72,134
-0.4%
Resource 10
53,280
-0.1%
Industrial 25
99,477
-1.0%
Financial 15
16,643
+0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders