LONDON - Shares in Anglo American (
OTO:AAUKF,
Forum) have dropped further, a day after the London-based mining company announced a radical reorganization plan to adapt to weak commodities prices.
Shares were down nearly 4 per cent to 320.40 pence by midafternoon Wednesday as investors worried about the company's future, despite a plan to streamline operations from 55 mines to around 20.
It was the second time in as many days the share price fell sharply. On Tuesday, the company said it was trimming 85,000 jobs under the restructuring and CEO Mark Cutifani told investors that the commodity prices slump requires “bolder action” from producers.
Mining companies around the world are facing tough times as economic growth slows in China. London-listed miners saw billions of pounds wiped off their value Tuesday.