London 07/09/2016 - Anglo American is expanding its operations into the trading arena, a company executive told FastMarkets this week.
After a pilot scheme through its thermal coal division, Anglo has rolled out what it calls an 'asset-backed trading model' into its other commodities, most notably, the copper concentrates and refined markets, Alexander Schmitt, executive head of marketing for base and specialty metals, said.
As part of the programme, the company is now open to purchasing or swapping third-party copper concentrate and will also take part in any tenders from other producers. It will also continue to sell its own concentrates from mines such as Collahuasi and Los Bronces in Chile.
While its prop trading operations are still in their early stages, the company sees the optimisation of the book as the potential future direction for Anglo American.
"I think they will be very conservative at first and the trading will be as much 'optimizing' as actual trading," a senior concentrates trader at another company said.
On the copper side, Anglo has hired Keith Rowe - formerly of Gunvor and MRI - in its London office to look after the programme for the European timezone and Jorge Olivares in Chile, who will source third-party material in the Americas.
Anglo has already done deals for several parcels of concentrate from other producers, FastMarkets understands.
Nickel is not part of the new trading model while the company pursues the sale of some of its assets here, Schmitt noted.
(Additional reporting by Archie Hunter, editing by Mark Shaw)