Anglo American conducts cost review for iron ore project in Brazil

UK-based mining giant Anglo American has provided an update on its 26.5 million mt per year Minas-Rio iron ore project in Brazil.
 
In July this year, Anglo American had stated that the first iron ore shipment from the project was anticipated to be delayed to the second half of 2014, subject to resolving existing licensing challenges by the end of 2012.
 
Anglo American has announced that since July work has continued to resolve the licensing challenges, including three injunctions affecting construction activities at the beneficiation plant, as well as land access issues affecting the 525 km pipeline route.
 
The miner added that two of the three injunctions were removed during September 2012, enabling construction of the primary crusher and conveyor system at the mine site, while the third injunction, which affects the construction of the electricity transmission line, remains.
 
Anglo American is carrying out a detailed cost review to assess the impact of the already announced delay and the other disruptive challenges faced by the project which include high cost inflation across the construction industry in Brazil. The capital expenditure for the project is unlikely to be less than $8 billion, according to current indications.