JOHANNESBURG (Reuters) - Global miner Anglo American (>> Anglo American plc) said on Tuesday it plans to sell its iron ore unit, as part of a sweeping strategic overhaul to cope with commodities rout that has triggered a fight for survival even among heavyweights.

The global commodity rout, which has seen crude oil and copper prices hit multi-year lows this year, has forced Anglo and its peers to sell assets and cut dividends and capital spending to preserve cash and reduce debt.

Anglo, which reported a 55 percent drop in underlying core profit, or EBIT, owns about 70 percent of Kumba Iron Ore (KIO) (>> Kumba Iron Ore Ltd.), Africa's biggest miner of the steel-making ingredient.

"The company has initiated a review to consider options to exit from KIO at the appropriate time, including a potential spin-out," Anglo said in statement.

Johannesburg-listed shares in the Anglo, the world No. 5 mining company by value, jumped more than 7 percent, reversing earlier losses, to 96.14 rand by 0926 GMT.

Anglo said underlying earnings before interest and tax fell 55 percent to $2.2 billion from $4.9 billion a year earlier.

The firm had been expected to post annual earnings before interest and tax of $1.5 billion, according to Thomson Reuters analysts' forecasts, down 70 percent year-on-year.

Ratings agency Moody's on Monday downgraded Anglo, citing expected lower commodity prices and doubts over how long it would take the company to pay down debt.

Rival Rio Tinto (>> Rio Tinto Limited) (>> Rio Tinto plc) on Thursday scrapped its generous payout policy in the face of a bleak outlook for the global economy after it slumped to a net loss for 2015 and posted its worst underlying earnings in 11 years.

(Reporting by Zandi Shabalala; Editing James Macharia)