| Thu 8 Oct 2009, 15:16 | | AGL - Anglo American Plc - Highlights progress on the development of its world |
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AGL
ANAAL
AGL - Anglo American Plc - Highlights progress on the development of its world
class key strategic growth 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")
News Release:
Anglo American highlights progress on the development of its
world class key strategic growth projects
Anglo American is hosting a visit to South America for international investors
and analysts from 6th to 8th October. The visit includes a number of
presentations on Anglo American`s three key strategic growth projects in
Brazil and Chile, namely the Minas Rio iron ore project, the Los Bronces copper
expansion project and the Barro Alto nickel project.
Anglo American has established a portfolio of world class operating assets and
development projects, with a clear strategy to deploy capital towards
commodities and projects that deliver long term, through-the-cycle returns.
Anglo American has a $17 billion pipeline of approved projects across the most
structurally attractive commodities of platinum, iron ore and copper, in
addition to making targeted high quality investments in nickel.
Anglo American has prioritised investment in the development of its three
key near term strategic growth projects during the economic downturn in order
to position the Group to capitalise on the next phase of global economic
growth. Excellent progress has been made at all three projects which remain
on track to enter production from 2011 onwards and will be well placed on
their respective industry cost curves, with long resource lives and positioned
to allow the Group to benefit from a growing commodity demand environment.
Minas Rio (iron ore)
The Minas Rio iron ore project in Brazil is a rare multi-billion tonne
resource in the highly attractive seaborne iron ore market with the benefit
of an integrated logistics system and low production costs expected to be
firmly in the first quartile of the cost curve. Since the acquisition of
Minas Rio, Anglo American has undertaken considerable geological work to
increase confidence in the resource estimates, resulting in the increase of
resources from 1.2 billion tonnes at the time of acquisition in 2007 to 4.6
billion tonnes, a nearly fourfold increase, with further resource potential.
The beneficiation test work performed to date has produced excellent
results, with pilot sample iron grade (Fe) above 69%. The anticipated product
Fe grade over the life of the mine is expected to be above 68%, with
extremely low alumina, silica and phosphorus contaminants. With such quality
characteristics, Minas Rio pellet feed will rank as a top quality product
in an industry that is expected to continue to experience declining ore grades.
Across Anglo American`s iron ore interests, the Group has the potential to
increase iron ore production to in excess of 150 Mtpa within 10 years.
There has also been excellent progress made on the delivery of the first phase
of project development. Anglo American has obtained a series of important
licences since acquisition in August 2008 and the overall licensing process
is on track. The construction of the port at Acu is well advanced and the
earthworks for the beneficiation plant and pipeline are progressing towards
first production in the second quarter of 2012, with ramp-up to 26.5 Mtpa.
Due to the size of the ore body and the dedicated logistics infrastructure,
Minas Rio has considerable expansion potential, with planning underway to
increase production in a second phase to 80 Mtpa.
Los Bronces (copper)
Anglo American`s 100% owned Los Bronces copper mine in Chile is well advanced
in its expansion project, with engineering work more than 80% complete. Using
proven technology, development is now well progressed into the execution phase
with first production on target to be delivered in the fourth quarter of 2011.
Production is scheduled to increase to an average of 415 ktpa over the first
ten years of full production (490 ktpa over the first three years). At peak
production levels, Los Bronces is expected to be the fifth largest producing
copper mine in the world, with highly attractive cash operating costs of $0.70
per pound and reserves that support a mine life of 30 years. Resource and
mineralisation studies carried out by Anglo American`s technical teams support
further potential expansion.
In addition to the Group`s attractive copper growth options in other e
stablished mining jurisdictions, namely Peru and the US, Anglo American has
announced two very significant and high quality new discoveries at Los
Sulfatos and San Enrique Monolito close to its Los Bronces mine in Chile.
These two new copper prospects together increase the Group`s copper resources
(excluding reserves)
by approximately 50%.
Barro Alto (nickel)
The Barro Alto nickel project is progressing well, with overall development
more than 70% complete, remaining on track for start up in the first quarter
of 2011. This project leverages an existing operation and proven technology
and will produce an average 36 ktpa of nickel in full production (41 ktpa over
the first five years), with a cost position in the lower half of the curve.
Further asset optimisation initiatives are underway which are expected to
improve cost positioning further.
Barro Alto has an approved life of mine of more than 25 years with further
upside potential from its extensive resource base. When Barro Alto reaches
full production in 2012, Anglo American`s nickel production will reach 60
ktpa, while additional potentially world class projects in the pipeline could
increase production to 140 ktpa, with further upside potential, leveraging the
Group`s considerable nickel laterite technical expertise.
Minas Rio, Los Bronces and Barro Alto are three projects which demonstrate
Anglo American`s ability to deliver high quality, low cost projects that are
well timed to deliver in a period of expected cyclical upturn as a result of
consistent and focused investment through the cycle. In terms of production,
Anglo American`s $17 billion pipeline of approved projects is expected to
deliver organic growth of one third by 2013.
The presentations are available on the Anglo American website:
www.angloamerican.co.uk.
For further information, please contact:
United Kingdom
James Wyatt-Tilby, Media Relations
Tel: +44 (0)20 7968 8759
South Africa
Anna Poulter, Investor Relations
Tel: +27 (0)11 638 2079
Pranill Ramchander, Media Relations
Tel: +27 (0)11 638 2592
About Anglo American
Anglo American plc is one of the world`s largest mining 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. The Group is
geographically diverse, with operations in Africa, Europe, South and North
America, Australia and Asia.
(www.angloamerican.co.uk)
Dealing Disclosure Requirements
Under the provisions of Rule 8.3 of the Takeover Code (the "Code"), if any
person is, or becomes, "interested" (directly or indirectly) in 1% or more
of any class of "relevant securities" of Anglo American or Xstrata plc
("Xstrata"), all "dealings" in any "relevant securities" of that company
(including by means of an option in respect of, or a derivative referenced
to, any such "relevant securities") must be publicly disclosed by no later
than 3.30 pm (London time) on the London business day following the date of
the relevant transaction. This requirement will continue until the date on
which the offer becomes, or is declared, unconditional as to acceptances,
lapses or is otherwise withdrawn or on which the "offer period" otherwise ends.
If two or more persons act together pursuant to an agreement or understanding,
whether formal or informal, to acquire an "interest" in "relevant securities"
of Anglo American or Xstrata, they will be deemed to be a single person for
the purpose of Rule 8.3.
Under the provisions of Rule 8.1 of the Code, all "dealings" in "relevant
securities" of either Anglo American or Xstrata by Anglo American or Xstrata,
or by any of their respective "associates", must be disclosed by no later than
12.00 noon (London time) on the London business day following the date of the
relevant transaction.
A disclosure table, giving details of the companies in whose "relevant
securities" "dealings" should be disclosed, and the number of such securities
in issue, can be found on the Takeover Panel`s website at
www.thetakeoverpanel.org.uk.
"Interests in securities" arise, in summary, when a person has long economic
exposure, whether absolute or conditional, to changes in the price of
securities. In particular, a person will be treated as having an "interest" by
virtue of the ownership or control of securities, or by virtue of any option in
respect of, or derivative referenced to, securities.
Terms in quotation marks are defined in the Code, which can also be found on
the Takeover Panel`s website. If you are in any doubt as to whether or not you
are required to disclose a "dealing" under Rule 8, you should consult the Panel.
Forward-Looking Statements
This announcement includes forward-looking statements. All statements other
than statements of historical facts included in this announcement, including,
without limitation, those regarding Anglo American`s financial position,
business and acquisition strategy, plans and objectives of management for
future operations (including development plans and objectives relating to
Anglo American`s products, production forecasts and reserve and resource
positions), are forward-looking statements. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of Anglo American, or
industry results, to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements.
Such forward-looking statements are based on numerous assumptions
regarding Anglo American`s present and future business strategies and the
environment in which Anglo American will operate in the future. Important
factors that could cause Anglo American`s actual results, performance or
achievements to differ materially from those in the forward-looking
statements include, among others, levels of actual production during any
period, levels of global demand and commodity market prices, mineral resource
exploration and development capabilities, recovery rates and other
operational capabilities, the availability of mining and processing
equipment, the ability to produce and transport products profitably, the
impact of foreign currency exchange rates on market prices and operating
costs, the availability of sufficient credit, the effects of inflation,
political uncertainty and economic conditions in relevant areas of the world,
the actions of competitors,activities by governmental authorities such as
changes in taxation or safety, health, environmental or other types of
regulation in the countries where Anglo American operates, conflicts over
land and resource ownership rights and such other risk factors identified
in Anglo American`s most recent Annual Report. Forward-looking statements
should, therefore, be construed in light of such risk factors and undue
reliance should not be placed on forward-looking statements. These
forward-looking statements speak only as of the date of this announcement.
Anglo American expressly disclaims any obligation or undertaking
(except as required by applicable law, the City
Code on Takeovers and Mergers (the "Takeover Code"), the UK Listing Rules,
the Disclosure and Transparency Rules of the Financial Services Authority,
the Listings Requirements of the securities exchange of the JSE Limited in
South Africa, the SWX Swiss Exchange, the Botswana Stock Exchange and the
Namibian Stock Exchange and any other applicable regulations) to release
publicly any updates or revisions to any forward-looking statement contained
herein to reflect any change in Anglo American`s expectations with regard
thereto or any change in events, conditions or circumstances on which any
such statement is based.
Nothing in this announcement should be interpreted to mean that future
earnings per share of Anglo American will necessarily match or exceed its
historical published earnings per share.
Certain statistical and other information about Anglo American included in
this announcement is sourced from publicly available third party sources. As
such it presents the views of those third parties, but may not necessarily
correspond to the views held by Anglo American.
8 October 2009
Sponsor:
UBS South Africa (Pty) Ltd
Date: 08/10/2009 15:16:01 Produced by the JSE SENS Department.
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