Completion of sale of Amapa to Zamin

RNS Number : 0628S

Anglo American PLC

04 November 2013

 



1 November 2013

Anglo American completes the sale of Amapá to Zamin

Anglo American plc ("Anglo American") announces the completion of its sale of 100% of the Amapá iron ore operation in Brazil ("Amapá") to Zamin Ferrous Ltd. ("Zamin") following receipt of regulatory approval for an initial total cash consideration of $134 million, net of certain completion adjustments.

As announced on 25 September 2013, Zamin will also pay Anglo American conditional deferred consideration of up to a maximum of $130 million in total, payable over a five year period and calculated on the basis of the market price for iron ore. Anglo American will use the proceeds to pay down debt.

As part of the transaction, Anglo American will assume responsibility for, and the risks and rewards of, the insurance claim in relation to the Santana port incident by acquiring the claim at full claim value.

 For further information, please contact:

Media		Investors
UK James Wyatt-Tilby Tel: [phone]		UK Paul Galloway Tel: [phone]
		Caroline Crampton Tel: [phone]
South Africa Pranill Ramchander Tel: [phone]		Sarah McNally Tel: [phone]

 

 

Notes to editors:

Anglo American is one of the world's largest mining companies, is headquartered in the UK and listed on the London and Johannesburg stock exchanges. Our portfolio of mining businesses meets our customers' changing needs and spans bulk commodities - iron ore and manganese, metallurgical coal and thermal coal; base metals and minerals - copper, nickel, niobium and phosphates; and precious metals and minerals - in which we are a global leader in both platinum and diamonds.  At Anglo American, we are committed to working together with our stakeholders - our investors, our partners and our employees - to create sustainable value that makes a real difference, while upholding the highest standards of safety and responsibility across all our businesses and geographies. The company's mining operations, pipeline of growth projects and exploration activities span southern Africa, South America, Australia, North America, Asia and Europe.

www.angloamerican.com

Zamin Ferrous is a private international mining group that has been operating in Brazil since 2005 and owns three significant assets with a combined 1,500 Mt potential resource in Brazil as well as the 2,500 Mt Valentines Project in Uruguay. Zamin owns the Zamapa iron ore processing facility in Amapa state with a total of 200 employees. It also owns 50% of the Susa iron project, which is located in the state of Rio Grande Norte and the Greystone project, a large iron ore deposit in the south east of Bahia State. Shipments from Susa and Zamapa began in 2011 and on-going exploration at Greystone has proven a 284 Mt resource, with a potential resource of 700 Mt. Zamin sold its Bamin project in the State of Bahia to ENRC for total compensation of $1 billion paid in 2008 and 2010.

 

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