Giant under pressure

London

MINING giant Anglo American is facing a crisis of confidence. It unveiled what it called a "radical" restructuring on Dec 8, designed to meet the dangers posed by the rout in commodities prices. More than a quarter of the workforce is to go. Investment spending is being slashed. The dividend is ditched.

The boom years of the commodities super-cycle, when mining companies listed in London offered high-growth returns linked to China's rapidly expanding economy, are well and truly finished. The dividend-rich security that attracted investors to the mining sector is also a thing of the past.