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

ANGLO American has reported another yearly net loss after a multi-billion-dollar writedown of the value of its iron ore operation in Brazil.

ANGLO American has reported another yearly net loss after a multi-billion-dollar writedown of the value of its iron ore operation in Brazil, more evidence of the toll that slumping commodity prices are taking on the global mining sector.

The London-based miner wrote down $US3.9 billion ($5bn) on its struggling iron ore and coalmining assets. The company, which ranks as one of Australia’s biggest coalminers, said in January it planned to take the charge.

Slowing raw material demand in China and an increase in supply from competitors such as BHP Billiton and Rio Tinto have led to lower iron prices amid slack demand for other commodities.

Anglo reported a net loss of $US2.51bn in 2014, worse than the $US961 million net loss the previous year.

Dow Jones Newswires