In its calendar-year financial results, Anglo American revealed a $2 billion target from cost saving and efficiency initiatives, while this year’s capital expenditure is to be cut more than 50% to $4.5 billion.

Commenting on the bleaker commodities markets, Anglo American chief executive Cynthia Carroll said the breadth and severity of the global economic downturn and its impact on growth rates in key sectors and economies are difficult to overstate.

Last week Anglo Coal spokesman Aldo Pennini told International Longwall News the company’s review of the whole of its Australian operations would be implemented by the end of March.

An announcement is expected to be made within the next fortnight.

Earlier this month Anglo chopped 42 permanent staff and an unknown number of contractors after closing the north pit of its Dawson open cut and highwall operation near Moura in Queensland.

Anglo American, which also has base and ferrous metals, platinum and diamond divisions, had a record operating profit of $2.24 billion for last year.

The 265% jump in earnings from 2007 represented 23% of total operating profit from Anglo’s core operations.