Anglo American agrees to buy iron ore projects

Tuesday, 01 April 2008 13:58:37 (GMT+3)   |  
       

UK-based mining company Anglo American Plc has signed an agreement with Brazilian firm MMX Mineração e Metálicos (MMX) to take the control of two iron ore projects located in Minas-Rio and Amapa, Brazil.
 
Anglo American has acquired the mines from MMX via the purchase of a 63.5 percent stake in a new company called IronX, which will be separated from MMX. IronX will hold a 51 percent stake in the Minas-Rio project and a 70 percent stake in the Amapa iron ore system. 

As part of the company's development plan to focus on the iron ore industry, Anglo American has acquired the projects in question for the equivalent of €3.5 billion.

The Minas-Rio project is currently under development and is expected start mining operations in the first half of 2010 with an annual capacity of 25.6 million mt of iron ore.

On the other hand, the Amapa project was activated last December and has an annual capacity of 6.5 million mt of iron ore.

Upon the completion of the purchase of the 63.5 percent stake in IronX, Anglo American plans to submit an offer to the minority shareholders to increase its stake in the company to 100 percent.


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