Anglo American's write down - not quite as bad as Rio Tinto's

Miner setback.

Seems like all the mining giants are suffering write-downs at the moment. Earlier this month it was Rio Tinto, and now it's Anglo American, which has written down the value of its Minas-Rio iron ore project in Brazil by $4bn.

This looks odd against the positive production figures that both companies posted in the last quarter - but the mining industry is cyclical - and the move anticipates a bit of a tougher season.

So far only Rio Tinto have had to get rid of their chief exec though: their mistake  - a $3bn writedown on an African coal project - was just too big.
Cynthia Carroll of Anglo American is unlikely to see the same fate as Tom Albanese. Here's the FT:

Ms Carroll’s mistake over Minas Rio in Brazil was more forgivable than Mr Albanese’s. She underestimated the ability of Brazilian bureaucracy to delay development work. But the mine remains a valuable asset, expected to produce ore at a cash cost of $30 a tonne compared with a forecast 2013 average sale price of $120. Mr Albanese overestimated the quality of Rio’s coal reserve in Mozambique. That undercut his credibility as a miner.

But it's the season to be cautious. BHP have written down asset values, and there is speculation that Xtrata could be on its way.

Anglo American has suffered write downs. Photograph: Getty Images
Photo: Getty
Show Hide image

Cabinet audit: what does the appointment of Liam Fox as International Trade Secretary mean for policy?

The political and policy-based implications of the new Secretary of State for International Trade.

Only Nixon, it is said, could have gone to China. Only a politician with the impeccable Commie-bashing credentials of the 37th President had the political capital necessary to strike a deal with the People’s Republic of China.

Theresa May’s great hope is that only Liam Fox, the newly-installed Secretary of State for International Trade, has the Euro-bashing credentials to break the news to the Brexiteers that a deal between a post-Leave United Kingdom and China might be somewhat harder to negotiate than Vote Leave suggested.

The biggest item on the agenda: striking a deal that allows Britain to stay in the single market. Elsewhere, Fox should use his political capital with the Conservative right to wait longer to sign deals than a Remainer would have to, to avoid the United Kingdom being caught in a series of bad deals. 

Stephen Bush is special correspondent at the New Statesman. He usually writes about politics.