Anglo American, a global leader in mining with diverse mining assets, could sell Anglo Platinum Limited, the world's largest producer of the metal and other South African assets in order to increase its valuation in case it decides to sell itself.
Analysts led by Michael Rawlinson at boutique investment bank Liberum Capital Ltd, a restructuring specialist with experience in handling IPOs and mergers and acquisitions, said in a note yesterday that although the sale was ''unthinkable a few years ago,'' the idea ''could have merit now.''
London-listed Anglo American could also sell its Kumba Iron Ore unit, Liberum said.
Liberum bases its assumptions because of the ''weighty exposure to South Africa where issues with power, labour, rail and corruption all contribute to a worsening business environment.''
Rawlinson and his team say that due to the power disruptions in 2008 and shortage of electricity generation, South African mine production has been affected.
South Africa's department of mines in August 2010 had placed a six-month moratorium on issuances of new mining licenses after it discovered maladministration in the award of prospecting rights.