UK-based diversified miner Anglo American plc has announced that the company has reached certainty around its long-term port tariff arrangements and achieved clarity in relation to the port's capital funding - in connection with the Minas-Rio iron ore project in Brazil.
Anglo American has concluded a fixed 25-year iron ore port tariff agreement with its port partner, LLX SA, in relation to the LLX Minas-Rio (LLX MR) owned iron ore port facility at Açu that forms part of the integrated iron ore system of the Minas-Rio project. Anglo American owns a 49 percent shareholding in LLX MR.
Anglo expects to spend an additional $525 million relating to the port, taking the miner's total share of development costs to about $1.2 billion. Initial works on Minas Rio, one of Anglo American's biggest growth projects, is expected to begin in March after being hit by delays and cost increases.
Cynthia Carroll, chief executive of Anglo American, said, "We have now secured an extremely competitive cost position for our world class Minas-Rio iron ore project in Brazil, with an FOB cost well inside the first quartile. The optionality for port expansion to more than 90 million mt per year and the priority rights we have for our iron ore shipments at the port make this a key strategic asset for Anglo American in Brazil."