UK-based
mining giant
Anglo American has announced that it has completed the cost and schedule review for its Minas Rio
iron ore project in
Brazil, reporting that it expects to register an impairment charge of $4 billion on the basis of revised capital expenditure requirements.
According to
Anglo American, the capital expenditure for the Minas Rio project is projected to increase to $8.8 billion, following the November 2012 guidance and the completion of the review.
Despite the challenges the Minas Rio project has faced,
Anglo American is targeting first ore on ship by the end of 2014. The miner stated that the estimated
iron ore resources at Minas Rio have increased more than fourfold to 5.77 billion mt since the acquisition in 2008.
As SteelOrbis previously reported, in December 2012
Anglo American announced that all three injunctions affecting the project had been removed.