Global miner Anglo American (LON:AAL) joined the ‘disappointing results club’ this morning as the London-listed mining groupreported that its first-half operating profitdropped almost 40% – reportedly driven by weak commodity prices and mounting costs.
The group published an operating profit of $3.7 billion in the January-June period, while earnings reached $4.9 billion, representing a 31% drop and below the forecasted $5.2 billion.
Further disappointment came as Anglo announced another setback to its flagship iron ore project, Minas Rio, in Brazil. Licensing issues have delayed production at the mine, which is now expected to start exporting the commodity by the end of 2014, a year behind schedule.
“We are in a very challenging country and environment. There are 50 projects that have been put into the delay category, “ said Anglo American CEO Cynthia Carroll.