Anglo American to Retain Significant Stake in Amplats Following June Demerger Plans

Mining giant Anglo American has announced its intention to maintain a 19.9% shareholding in Anglo American Platinum (Amplats) following the planned demerger in June, strategically positioning itself to minimise potential market disruption from mass stock selling.

The FTSE 100 mining corporation, dual-listed in London and Johannesburg, is set to receive a substantial £600 million special dividend from Amplats prior to the separation. This move forms part of a broader strategic restructuring announced in May, which was initiated to counter a takeover bid from BHP and reinvigorate the company’s market position.

Amplats, recognised as the world’s leading platinum producer, operates five mines across South Africa and one in Zimbabwe, employing approximately 30,000 workers. The company specialises in platinum group metals production, including palladium and rhodium.

Duncan Wanblad, Anglo American’s Chief Executive, emphasised the responsible nature of the demerger, stating the retained stake would help manage share flowback by reducing the overall volume of demerged shareholding. The company has pledged to gradually divest its remaining stake over time, confirming it will not seek board representation post-demerger.

Despite reporting a 40% decline in annual profits to $456.7 million due to lower commodity prices, Amplats has announced a special cash dividend exceeding $850 million. This brings the total dividend to approximately $900 million, with Anglo American set to receive roughly $600 million of this distribution.

The demerger represents a significant shift in Anglo American’s portfolio strategy, following its previous separation from South African thermal coal operations through the creation of Thungela in 2021. The mining group’s future focus will centre on its core copper and iron ore operations, with plans also in motion to divest its De Beers diamond business.