Anglo American to post $4 billion write-down on Minas Rio iron ore project

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.