On November 14, UK-based global mining giant Anglo American plc (Anglo American) announced that it has agreed to sell its subsidiaries Chile-based steelmaker Moly-Cop and Canada-based steelmaker AltaSteel to Australian steelmaker OneSteel Limited (OneSteel) for a total consideration of $932 million on a debt and cash free basis.
The businesses consist of the grinding media and steel product businesses of Anglo American located in North and South America, and includes the joint venture interests in the Donhad grinding media business in Australia and GenAlta Recycling Inc. in Canada. The business was previously managed as part of the wider Scaw Metals Group.
Cynthia Carroll, chief executive of Anglo American, said, "Following the $1.3 billion divestment of our zinc portfolio in May 2010, the sale of Moly-Cop and AltaSteel represents further strategic progress as we continue to focus on our core commodity businesses and on the delivery of our major near-term growth projects. I thank the Moly-Cop and AltaSteel management teams and employees for their support during this sale process and I wish them every success under the ownership of OneSteel."
Geoff Plummer, CEO of OneSteel, said, "This is a significant milestone for the company and positions OneSteel as a global player in grinding media with participation in the world's largest and most attractive mining consumables markets, as well as providing OneSteel with a great platform for future growth in mining consumables."
Under the agreement, economic interest in the business passes to OneSteel with effect from July 1, 2010. Completion of the transaction is conditional on antitrust clearance in Canada and it will undergo regulatory review in Australia and Brazil.
Anglo American said that it will continue to progress its divestment program announced in October 2009, including the sale of the Scaw Metals Group based in South Africa.