Agarwal clashes with Anglo American board over new director

Anglo American’s biggest shareholder Anil Agarwal has voted against a new Brazilian board member in a clash over strategy with the mining company’s board.

Agarwal, the billionaire chairman of Vedanta Resources, owns almost 20% of Anglo’s shares. His opposition to the election of Marcelo Bastos led to 26% of votes going against the appointment at Anglo American’s annual meeting.

Anglo said Bastos brought more than 30 years of mining experience to the company with a particular focus on South America. Agarwal has been pressing for the company to divert its attention to South Africa. His family trust, Volcan Investments, confirmed Agarwal’s vote against Bastos, Reuters reported.

“Volcan believes Anglo American should renew its focus on opportunities in South Africa,” Volcan's statement said.

“It had recommended the company increase the number of South Africans on the board to more closely align board composition to the importance of Anglo American’s businesses in South Africa.”

Agarwal began building a stake in Anglo American in 2017, prompting speculation that he wants to merge the company with Vedanta.

After questions from shareholders, Stuart Chambers, Anglo American’s chairman, told the meeting: “Although it looks like the appointment of Marcelo Bastos will be approved by a significant majority, the proportion voting in favour is lower than for other directors […] I firmly believe that in Mr Bastos we have brought on to the board an individual of the highest calibre

“Unfortunately, the voting, while sufficient for strong approval, indicates that there is not universal support for our approach. We of course respect shareholders' opinions and will continue to engage and advocate for what we believe is the right approach.”