Anglo American records $3bn loss after $5bn writedown

Slumping commodity prices are continuing to take toll on the global mining sector as multinational mining company Anglo American reported another yearly net loss following a multi-billion-dollar writedown of the value of its iron ore operation in Brazil.

Image credit: flickr user: Anglo American Plc
Image credit: flickr user: Anglo American Plc

According to The Australian, the London-based company – which is one of Australia’s biggest coalminers – wrote down $US3.9 billion ($5bn) on its struggling iron ore and coalmining assets, causing it to record a net loss of $US2.51bn in 2014, worse than the $US961 million net loss the previous year.

This is seen as a direct consequence of declining raw material demand in China and the increase in supply from competitors such as BHP Billiton and Rio Tinto, who are saturating the market with iron ore and coal and trigger slack demand for other commodities.

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