Speaking at the LME Week conference, which was hosted recently in London, Anglo American CEO Mark Cutifani stated that the mining and metals industry has a “bright future”, even though in the last few months prices have been fluctuating.
Cutifani’s prediction will bring cheer to mining contractors and companies that have been reeling with the drop in prices of metals and other commodities after demand for commodities slowed down. China is the biggest consumer of metals and mining products, but with its economy slowing down, the country is not importing raw materials like before.
Cutifani admitted that the mining industry had been “overextending itself”, since many companies have been bailed out by the timely increase in prices. However, this is a stance that the companies cannot afford to take if they are in the business for the long-haul.
Anglo American is a FTSE 100-listed company for its mining products, and it is now focusing on actively marketing the commodities. The mining giant is looking to encourage new uses for platinum, which is currently used to make jewellery and catalytic converters. Anglo American is looking to promote the use of platinum in fuel cells that are used in automobiles.
Cutifani emphasised that mining is not a short-term industry and therefore it is important that mining contractors and companies create a sustainable plan to cater to the demand that will rise in the future. He went on to add that the only way to bring about a change in the industry is to use innovation and new technologies.
Anglo American is divesting its non-core assets and has started focusing on copper, platinum and diamonds. Some experts think that this will reduce the size of the company. However, Cutifani refuted this claim, stating that Anglo American is not shrinking its business just because it is producing fewer assets than before.