Anglo to sell Scaw Metals and other businesses

Anglo American is in the process of divesting from its non-core businesses, including the Scaw Metals Group, and is creating a new structure of Business Units around its core mining commodities.

“This development will bring new opportunities for those who are willing to embrace the change and reach out to make a positive contribution to your new employer,” said Norman Mbazima, the CEO of Scaw Metals at the time of publishing this information in November 2009.

He added, “In addition to Scaw, Anglo will be selling its portfolio of zinc assets, the Copebrás phosphates and Catalão niobium businesses in Brazil, the metallurgical coal businesses in Canada and Venezuela, and Tarmac.

“Anglo has created seven new Business Units, each headed by a CEO reporting directly to Cynthia Carrol, Anglo’s CEO.”

Norman was appointed to head up Anglo’s Thermal Coal Business Unit, based in South Africa, and left Scaw in December. He said, “So, in the same way that you (the employees) will have new challenges, so will I. Perhaps that’s what it is really all about, not just at work, but life in general. If we get too comfortable we don’t grow, and if we stop growing our minds become stagnant and we miss out on life’s exciting challenges and opportunities. So, let me encourage you to embrace the change and do your very best.”

New Business Units

The assets identified for divestment will be managed as a separate Non-Core Asset portfolio until they are sold. Duncan Wanblad will head this business as group director. He will continue to be based in London and will report directly to Cynthia Carroll. Cynthia said, “Philip Baum, the chief executive of the Ferrous Metals and Industries division, will be leaving the group as a result of the changes.” She wished Philip well in his future endeavours and thanked him for his valuable leadership and guidance in his tenure with the group.

Anglo’s new Business Units and their CEOs are:

Platinum: Neville Nicolau in South Africa
Thermal Coal: Norman Mbazima in South Africa
Metallurgical Coal: Seamus French in Australia
Copper: John MacKenzie in Chile
Nickel: Walter De Simoni in Brazil
Kumba Iron Ore: Chris Griffith in South Africa
Iron Ore Brazil: Stephan Weber in Brazil


HEREWITH NORMAN’S YEAR END MESSAGE

Scaw has proven its mettle
Despite change, the show will still go on

2009 has arguably been the most challenging year for the world economy since the last world recession in the early 1930’s.

All of Scaw’s operations around the world had to deal with unprecedented declines in demand for their products. The operations most harshly affected were Rolled and Cast Products, and Wire and Strand.

Whilst the Grinding Media, Steel Wire Rope and Chain operations were not as badly affected, they also had to adapt to weak demand because of reduced levels of mining activity. The group’s operating environment was made more difficult by profit margins coming under extreme pressure because of intense competition and the requirement by our customers to reduce costs as their own profitability was adversely affected by the economic downturn.

Scaw has weathered the storm

Despite these adverse circum-stances in all steel and engineering markets, Scaw has “weathered the storm” fairly well, primarily because we turned adversity to advantage by working smarter, spending wisely and  saving money.

I congratulate you all on your performance. I have been impressed by the way employees joined together to withstand the economic onslaught that hit us. Well done and thank you. There are signs that the worst is behind but we must not slacken our efforts to continually strive to improve our performance and to prepare ourselves for the more prosperous times which will come as the economic cycle turns. We have proven our resilience and despite the pending sale of Scaw, the show must still go on.

On a personal note I have to tell you that I enjoyed being here and am sad to be leaving so soon. I leave you all with the wish that you may enjoy good fortune in the future.
Finally, I wish you and your families a happy and peaceful festive season in readiness for 2010.

Norman Mbazima
CEO, Scaw Metals Group (up until November 2009)