Page 12 - 100 years of Anglo American

He did more than just steer the company
through an unprecedented peaceful revolution;
JOT guided Anglo American through
momentous corporate changes, not least of
which included one of the first and biggest
empowerment deals – the sale of Anglo
American’s stake in Johnnic to the National
Empowerment Consortium in 1996 – the
merging with Minorco, and the international
listing on the London Stock Exchange.
In fact, it was under his leadership that
Anglo American underwent the most
significant and irrevocable corporate
transformation of its history. The merger
with its offshore investment arm, Minorco, in
1998 catapulted the company from a proudly
South African mining group to an
international industrial powerhouse that was Cynthia Carroll Tony Trahar
not only valued at £13 billion, but now a
member of the elite FTSE 100 Index. Given
the far more global character of the company
and a desire to attract international investors,
it was decided to switch the company’s
primary listing and head office to London in
1999.
In line with its new identity as a London-
listed PLC, Anglo American decided, at the
turn of the millennium, to embark on a
restructuring strategy to essentially strip
itself down to its primary mining assets.
Once a complex industrial and financial
group that spanned across more than half
the country’s economy, it had decided it
would move into the new millennium as a
solely mining-focused company, the activity
believed to be its core business.
This new corporate era and restructuring Sir John Parker Sir Mark Moody-Stuart
strategy required fresh leadership and, so, in
May 2000, Tony Trahar was appointed chief in 2006. During this time Sir Mark Moody- to 85%. Carroll, whose tenure ended in 2012,
executive officer of the international Stuart chaired Anglo American from 2002 to had a fundamentally positive effect through
conglomerate. Interestingly, the merger with 2009 and played a significant role in leading her dedication to the improvement of health
Minorco had compelled a structural change at the demerger of Mondi from Anglo American. and safety standards, and her commitment to
executive level, with the chairperson’s To build on this, it was decided that an dialogue with all stakeholders.
management responsibilities being split out entirely new kind of leader would be When Mark Cutifani, the Australian mining
into a new chief executive position. Trahar required. engineer who had headed up AngloGold
would be the first to occupy that new role, The appointment of Cynthia Carroll as Ashanti, took over the reins in early 2013, it
while JOT continued as chairperson for chief executive in 2007 certainly broke the was remarkably different from the company
another two years. leader mould. Not only was she a woman and that had been bequeathed by Harry
An accountant by training, Trahar was, like not a South African, she was the first Oppenheimer.
his predecessors, an Anglo American career external candidate appointed and the first It was no longer South Africa’s corporate
man having joined the corporation in 1974. He lead executive to actually have mining-related powerhouse whose strategy was dictated by a
had risen up the ranks to head up Mondi, the qualifications. In an industry that barely handful of executives and shareholders, and
corporation’s paper and packaging division, allowed women to work underground a few whose influence spanned the country’s
before his final promotion to the top job. decades ago, Carroll’s appointment shattered sociopolitical and economic landscape.
The restructuring campaign of the early the glass ceiling of international mining. It was now a global mining company
2000s was unsparing in its approach and Carroll’s tenure as chief executive coincided owned by international investors whose focus
culminated in the shedding of about $9 billion with the global financial crisis in 2008 and was on mining large, high quality orebodies
worth of noncore assets, including Anglo the volatile market swings that followed. across a select number of metals and
American’s steel, paper and agricultural- With Chinese demand for many mined minerals.
aluminium businesses. More significantly, its products also showing growth, she led the Although continuing volatile economic
relationship with diamonds and gold, the two company to expand its presence in iron ore conditions have led to a further reduction in
resources on which Anglo American had been through an ambitious new mine in Brazil, as the number of mining operations owned by
built and grown, was significantly altered well as investing in new capacity in Chilean the company, Cutifani has grown the group’s
during this period with the cutting of its copper and Brazilian nickel. Carroll continued production through improving productivity.
stake in AngloGold Ashanti from 51% to 41%, the restructuring that had preceded her, He has also focused the portfolio on its most
and the elimination of the crossholding share finally taking Anglo American out of the gold competitive assets in South Africa and
structure between Anglo American and its business. Also, during this time, in 2011, around the world, thereby establishing the
long-time sister company, De Beers. chairman Sir John Parker negotiated the buy- solid foundation from which the company
The restructuring was still under way out of the Oppenheimers’ 40% shareholding can move into the future.
when Trahar announced his early retirement in De Beers, taking Anglo American’s interest
12 ANGLO AMERICAN 100 YEARS