Global mining giant Anglo American said today that its net profit more than halved to $2.425 billion in 2009 as last year's economic downturn slashed the prices of metals.
The London-based company said it would not pay a dividend for a second year in a row after net profit slumped 53.5% from $5.215 billion in 2008.
'The impact of the global economic downturn on realised platinum group metals, iron ore, export coal, nickel and diamond prices has been the key driver of the decline in earnings, coupled with falling demand,' Anglo American, the biggest mining company in South Africa, said.
Amid the severe downturn, Anglo American axed a massive 23,400 jobs in 2009 - a year when it also fought off a hostile takeover attempt by Swiss miner Xstrata.
Xstrata approached Anglo American in June with a merger proposal to create one of the world's biggest miners with a combined market capitalisation of $68 billion.
However, Anglo American dismissed the proposal as 'totally unacceptable' and Xstrata eventually walked away last October.
The activities of the two companies overlap in many areas. Both own coal assets in Australia and South Africa, and there had been potential for savings across their copper mining operations.
Anglo American also has a 45% stake in De Beers, the world's largest diamond company, which last week reported an annual net loss.
