| Mon 31 Mar 2008, 15:35 | | AGL - Anglo American Plc acquires control of the Minas-Rio and |
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AGL
ANAAL
AGL - Anglo American Plc acquires control of the Minas-Rio and
Amapa iron ore projects
Anglo American plc
Incorporated in the United Kingdom
(Registration number: 3564138)
Short name: Anglo
Share code: AGL
ISIN number: GB00B1XZS820
("Anglo American plc" or "the company")
Anglo American acquires control of the Minas-Rio and Amapa
iron ore projects
Anglo American plc ("Anglo American") is pleased to announce that, following its
announcement dated 17 January 2008, it has signed an agreement with the
controlling shareholder of MMX Mineracao e Metalicos S.A. ("MMX"), Mr Eike
Batista, Chairman & CEO of MMX, and certain other MMX shareholders (together
"the Selling Shareholders"), to acquire a 63.5% shareholding in a new company
("IronX") which will be demerged from MMX and will own MMX`s current 51%
interest in the Minas-Rio iron ore project and 70% interest in the Amapa iron
ore system. Mr Eike Batista will be Chairman of IronX.
Anglo American has committed, after completion of this transaction, to extend an
offer to the minority shareholders of IronX at the same price per share paid to
the Selling Shareholders, the successful completion of which would result in
Anglo American owning 100% of the Minas-Rio project, 70% of the Amapa system and
49% of LLX Minas-Rio, the owner of the Port of Acu. Anglo American acquired 49%
of the Minas-Rio project as part of its original investment announced in April
2007, which included 49% of LLX Minas-Rio. These two projects, together with the
planned Kumba expansions, will significantly increase Anglo American`s
participation in the seaborne iron ore market to approximately 150Mtpa by 2017
in line with Anglo American`s strategic goal to become a significant player in
the iron ore industry.
IronX`s gross assets at 31 December 2007, on a proforma basis, were R$2.2
billion (US$1.2 billion) with a proforma operating loss for the year of R$25
million (US$13 million).
Anglo American will pay US$5.5 billion in cash for 100% of the issued and
outstanding shares of IronX, or approximately US$361.12 per IronX share
(assuming one IronX share for each current MMX share).
A further announcement will be made in due course.
For further information, please contact:
United Kingdom
James Wyatt-Tilby, Media Relations
Tel: +44 (0)20 7968 8759
Anna Poulter, Investor Relations
Tel: +44 (0)20 7968 2155
South Africa
Pranill Ramchander, Media Relations
Tel: +27 (0)11 638 2592
Notes to editors:
Anglo American plc is one of the world`s largest mining and natural resource
groups. With its subsidiaries, joint ventures and associates, it is a global
leader in platinum group metals and diamonds, with significant interests in
coal, base and ferrous metals, as well as an industrial minerals business and a
stake in AngloGold Ashanti. The Group is geographically diverse, with operations
in Africa, Europe, South and North America, Australia and Asia.
(www.angloamerican.co.uk)
MMX Mineracao e Metalicos S.A. consists of integrated mining, mineral
processing, production and logistics operations for iron ore and intermediate
products for the steel
industry. Principal projects include, MMX Corumba System, MMX Amapa System, MMX
Minas-Rio System and LLX Logistica. (www.mmx.com.br)
The Minas-Rio iron ore project is located in the Minas Gerais state in Brazil.
It will comprise a mine and beneficiation plant producing high-grade pellet
feed. The pellet feed will be transported through a slurry pipeline to the Port
of Acu which is being constructed in Rio de Janeiro State, with the potential
for further pipelines and rail access.
The Amapa iron ore system is located in the Amapa state in Northern Brazil.
Construction of the Amapa system was completed recently, with initial production
in December 2007 and with annual capacity of 6.5 million tons per annum of iron
ore. MMX currently owns 70% of the Amapa system and Cleveland Cliffs Inc. owns
30%.
Date: 31/03/2008 15:35:02 Produced by the JSE SENS Department.
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