Anglo fails to resume dividend

Two rivals -- Xstrata and Rio Tinto -- resumed payouts last week, having suspended them to save cash during the downturn.

Anglo Chief Executive Cynthia Carroll on Friday noted rivals that have resumed dividends also raised funds last year by share issues that were dilutive to shareholders.

"Unlike our peers we did not resort to issuing equity and we also have competing needs. We're funding highly attractive projects, we're maintaining our credit rating and rebuilding our capital position," she told a conference call.

"The resumption of the dividend at the earliest possible time remains a key priority for the board," Anglo said.

Carroll said Anglo, the fourth-biggest diversified mining group by market capitalisation, would review its dividend policy before issuing half-year results in August, basing its decision largely on commodity prices.

Although there were "headwinds" due to uncertain recovery in the west, Carroll said the near-term outlook for Anglo was strong.

"I'm not terribly worried because our copper, iron ore and coal products are largely going into Asia ... For our commodities we think there is continued strength in the market on the back of the emerging countries."

SHARES DIP

Anglo's shares fell 1.9 percent to 2454.5 pence by 0935 GMT, underperforming a 1.3 percent decline in the UK mining index <.FTNMX1770>. Last year, they gained 75 percent but lagged the UK mining index by 16 percent.