Anglo America’s iron ore project in Brazil, Minas-Rio, is not for sale, a company’s top executive told local media.
Ruben Fernandes, the company’s CEO for the Brazil-based project, said Anglo’s focus now is to keep a positive cash flow, no matter what iron ore prices will be in the short-term. The next two years should be challenging for Anglo’s Minas-Rio, as it seeks the optimization of the Brazilian asset and doesn’t expect new investments. Despite the challenges, Fernandes is optimist about the perspectives for Anglo in Brazil.
A Minas Gerais state environment authority, Semad, granted it an operating license for its phase 2. The move is seen by Anglo as fundamental for its Minas-Rio project, which aims to be competitive in the export market.
When it completes the project’s licensing at phase 3, Minas-Rio will have a 26.5 million/year iron ore capacity. The forecast volume should make it more competitive, since the higher production will bring costs down.
“Anglo redefined its three key businesses as copper, diamond and platinum, but it doesn’t mean the other businesses aren’t a priority. They just won’t receive investments for expansion,” the executive said.
The MinasRio is an Anglo’s fully integrated export iron ore operation, located in the Brazilian state of Minas Gerais. It includes a mine, a beneficiation plant, a 529 km pipeline as well as a dedicated export facility at the Açu port. Anglo is a 100 percent owner of the MinasRio mine, and has a 50 percent stake in the port facility.
Initially, Anglo thought in selling the Minas-Rio project within two or three years from 2016, as previously reported by SteelOrbis.