Update: Miners plunge to 11-year low after Anglo American scraps dividend

Shares in mining giant drop 11%

The FTSE 350 mining index plummeted 7% to its lowest level since 2004 on Tuesday, after Anglo American announced a restructure of its business and suspension of dividend payouts in 2016.

Shares in the mining giant dropped over 11% on the day following the announcement, dragging down other mining stocks as the sector struggles with collapsing commodity prices. The miner announced a raft of changes including an extra $1bn cut from capital expenditure, and the sales or closures of loss-making sites as well as a suspending this year's dividend payout - which was expected to be 29.4p, according to analysts. The group will also shrink assets from around 50 facilities to the low 20s, according to The Telegraph, while the workforce is being reduced to around 50,000. Its sh...