Mining giant Anglo American PLC announced on Thursday that it would reorganize its business into seven units.

South Africa will host company's three core businesses viz. Anglo Platinum, Kumba Iron Ore and Thermal Coal.

Copper business will be based in Chile, Metallugical Coal in Australia, while Brazil will host Iron Ore and Nickel businesses.

In addition, Anglo American also said that it would axe about 2,700 administrative plus management jobs and sell non-core assets.

Job-cuts are expected to result annual savings of $120 million.

John Parker, chairman of Anglo American, said, "Today's announcement represents an important step in creating a more streamlined business, with enhanced focus on operational effectiveness and project delivery."

Earlier in July, Anglo reported a 69 per cent fall in underlying profits for the first six-month period of the year.