Anglo American would be "materially downsizing," announced Mark Cutifani, chief executive of the mining conglomerate.

"We will be materially downsizing the portfolio beyond our previously advised targets. Literally 60 percent from where we are today," Cutifani told investors on Tuesday.

Along with the said downsizing was the cutting down of 85,000 employees, which is referred to as extreme cost-cutting. This strategy is expected to generate US$1 billion (AU$1.4 billion) worth of cash next year.

The company recently announced their selling of three coal mines in Queensland — Foxleigh, Dawson and Callide — and one in New South Wales, although Professor John Rolfe, an economist from Central Queensland University, said that searching for buyers would be difficult given the circumstances. "They've certainly been looking to get out of coal a little bit and consolidate further," Rolfe was quoted by the ABC as saying.

The struggle to sell the coal mines springs from the widespread news about the company’s recent downturn, and smaller companies will not be able to find the capital for purchasing the mentioned assets.

"They've certainly been looking to get out of coal a little bit and consolidate further,"Rolfe said.

"Negative cash flow assets will either be closed, placed on care and maintenance or sold," Cutifani added. The CEO explained that the radical restructuring in the company is necessary so it can cope with the global collapse in commodity prices.

Apart from Australia, Anglo American also has operations in southern Africa and North and South America. Its products include iron ore, diamonds, coal and copper.

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