Commodity producers all over the globe are struggling to cope up with dramatic drop in prices. Companies that were considered giants, even during 2008/09 financial crisis are now crumbling. Glencore, few weeks back was hot in news as its share price was nose-diving and it was battling with debt restructuring, asset sales to pay debt, cutting production from unprofitable mines.

Now it's Anglo American, which is on the news and getting hammered.

London listed Anglo American has so far lost 70% of its market and share prices are still dropping. To manage debt it has announced it will stop dividend payments to shareholders for at least 18 months. To cut costs, it had announced it will axe, two third of its global work force and now sold its majority stake in a Australian coal mine.

Those looking to hunt bargain in the mining industry looking to hold portfolio for next decade at least, Anglo is an excellent example of what to avoid - Companies with excessive leverage.