The company has decided to focus on competitive and long life assets to improve its cash flows and materially reduce net debt, amidst slump in commodity prices.
Anglo American will concentrate on core portfolio of 16 assets, including De Beers, PGMs and copper. It intends to primarily focus on asset quality and mineral endowment options and scale to support future opportunities.
The company is also preparing plans to carry out nickel, niobium and phosphates, and moranbah and grosvenor metallurgical coal disposal processes.
It has already made significant progress on other disposal processes, comprising of certain platinum and thermal and metallurgical coal operations in South Africa and Australia.
Anglo American chief executive Mark Cutifani said: "We have detailed a series of measures, including $1.9bn of additional EBIT benefits from cost and productivity improvements to deliver positive free cash flow in 2016 and beyond, and an additional $3-4 billion in asset disposal proceeds.
"As a result, we are targeting net debt of less than $10 billion in 2016, assuming current commodity prices and exchange rates. In the medium term, we are targeting net debt of $6 billion, supporting a return to a solid investment grade credit rating."
According to the company, around $1.9bn of cost and productivity improvements in this year expected to continue into 2017 and 50%($250m) central and global support cost reduction in medium term.
In addition, about 25% year-on-year reduction in total capex is expected to less than $3bn in this year.
