Anglo American extends overhaul on sliding commodities

Global mining giant Anglo American announced Tuesday a "radical" restructuring of the company, writing off billions of dollars in the process, as commodity prices crash on world markets.

"While we have continued to deliver our business restructuring and performance objectives across the board, the severity of commodity price deterioration requires bolder action," chief executive Mark Cutifani said in a statement, alongside news of impairments totalling between $3.7 billion and $4.7 billion (3.4 billion euros and 4.3 billion euros).

The prices of metals and other raw materials, notably oil, are sliding on markets owing to weak demand growth, notably from the world's second biggest economy China.

Cutifani added that Anglo American plans to halve its business setup to leave just three components -- its diamonds operation De Beers, Industrial Metals and Bulk Commodities.

"Anglo American is today setting out an accelerated and more radical restructuring programme to redefine the focus of its asset portfolio to transform the company's competitive position and create a more resilient business to deliver sustainable shareholder returns," the group statement said.

Delivering a blow to shareholders however, Anglo said it would suspend dividend payments until the end of next year.

The London-listed company said it expects "impairments of $3.7 - $4.7 billion, largely due to weaker prices and asset closures".

No details were provided regarding the number of job positions affected by the changes.