Anglo American to suffer up to $400m dip in Ebitda for 2018

Johannesburg – Multinational mining company Anglo American is likely to experience a $300 to $400m reduction in its Earnings before interest, taxes and amortisation (Ebitda) for 2018.

On Tuesday, Anglo American announced that the full inspection of its pipeline in Minas-Rio, Brazil will take about 90 days to complete.

“The inspection includes an internal scan of every section of the pipeline and will then be followed by a detailed analysis of the data and an assessment of required remedial action,” Anglo American said.

Once the inspection and repairs are concluded, mining operations will continue.

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CEO of Anglo American, Mark Cutifani said, “following the full inspection, there will inevitably be a period of analysis and remedial work, prior to testing and restart of operations upon receipt of regulatory consent”.

The company would send its own technical teams to assist the two specialists from Brazil, Cutifani said.

Employees at Minas-Rio will be provided with training during their period of leave.

“The majority of our Minas-Rio employees continue to be deployed across our operations in Brazil, including on the construction work required to secure our Step 3 operating licence in the first half of 2019,” Cutifani said.

The employees will also continue to get paid and benefit packages.

Anglo American shares closed at R301.29 share on Tuesday afternoon at 13:05 down 0.40%.