| Mon 15 Nov 2010, 9:00 | | AGL - Anglo American announces sale of Moly-Cop and AltaSteel to OneSteel for |
|
AGL
ANAAL
AGL - Anglo American announces sale of Moly-Cop and AltaSteel to OneSteel for
$932 million
Anglo American plc
Incorporated in the United Kingdom
(Registration number: 3564138)
Short name: Anglo
Share code: AGL
ISIN number: GB00B1XZS820
Anglo American announces sale of Moly-Cop and AltaSteel to OneSteel for $932
million
Anglo American plc ("Anglo American") announces that it has agreed to sell
Moly-Cop and AltaSteel (the "Business") to OneSteel Limited ("OneSteel") for
a total consideration of $932 million on a debt and cash free basis.
The Business consists of the grinding media and steel products businesses of
Anglo American located in North and South America, and includes the joint
venture interests in the Donhad grinding media business in Australia and
GenAlta Recycling Inc. in Canada. The Business was previously managed as part
of the wider Scaw Metals Group.
Cynthia Carroll, Chief Executive of Anglo American, said: "Following the $1.3
billion divestment of our Zinc portfolio in May 2010, the sale of Moly-Cop
and AltaSteel represents further strategic progress as we continue to focus
on our core commodity businesses and on the delivery of our major near term
growth projects. I thank the Moly-Cop and AltaSteel management teams and
employees for their support during this sale process and I wish them every
success under the ownership of OneSteel."
Geoff Plummer, CEO of OneSteel, said: "This is a significant milestone for
the company and positions OneSteel as a global player in grinding media with
participation in the world`s largest and most attractive mining consumables
markets, as well as providing OneSteel with a great platform for future
growth in mining consumables."
Under the agreement, economic interest in the Business passes to OneSteel
with effect from 1 July 2010. Completion of the transaction is conditional on
antitrust clearance in Canada and it will undergo regulatory review in
Australia and Brazil.
Anglo American will continue to progress its divestment programme announced
in October 2009 in a manner and to a timetable that maximises value to its
shareholders. This programme includes the sale of the Scaw Metals Group based
in South Africa.
Notes to editors:
Moly-Cop and AltaSteel
Moly-Cop is headquartered in Santiago, Chile and is a global manufacturer of
grinding media, with facilities in Chile, Peru, Mexico and Canada. These
facilities convert steel bars supplied by both AltaSteel and external steel
suppliers into grinding balls for use in mine milling circuits.
AltaSteel is based in Edmonton, Canada and is a vertically-integrated steel
mini-mill, which is supplied with scrap steel by Maple Leaf Metals (wholly-
owned) and GenAlta (50%-owned). AltaSteel`s products are ballstock (feedstock
for grinding ball plants), heat-treated grinding rods for use in rod mills
and reinforcing bars.
The Business also includes a 40% interest in Donhad, a joint venture with
Delta Group Australia (Pty) Ltd. (ultimately owned by Valmont Industries
Inc.). Donhad is managed by Delta and serves the Australian grinding media
market.
Key 2007 2008 2009 1H 2010
financials
(US$m)
Revenue 557 826 642 319
EBITDA 85 132 72 53
The Business produced in excess of 530,000 tonnes of grinding media and
grinding rods in 2009 and has an attractive pipeline of expansion projects
that position it well to benefit from growth in the mining sectors that it
serves in the Americas.
Anglo American plc is one of the world`s largest mining companies, is
headquartered in the UK and listed on the London and Johannesburg stock
exchanges. Anglo American`s portfolio of mining businesses spans precious
metals and minerals - in which it is a global leader in both platinum and
diamonds; base metals - copper and nickel; and bulk commodities - iron ore,
metallurgical coal and thermal coal. Anglo American is committed to the
highest standards of safety and responsibility across all its businesses and
geographies and to making a sustainable difference in the development of the
communities around its operations. The company`s mining operations and
extensive pipeline of growth projects are located in southern Africa, South
America, Australia, North America and Asia. www.angloamerican.com
OneSteel Limited is a fully integrated, global manufacturer and distributor
of steel and finished steel products. The company is self sufficient in iron
ore and has the ability to be self sufficient in scrap metal. OneSteel is
Australia`s premier manufacturer of steel long products and a leading metals
distribution company in Australia and New Zealand. OneSteel also makes
external sales of hematite iron ore and scrap metal. Revenue for the 2010
financial year exceeded $6.2 billion. OneSteel services more than 30,000
customers, offers more than 40,000 products globally and employs over 10,500
people. In addition to its Australian manufacturing operations and extensive
distribution footprint, OneSteel also operates nearly 50 facilities overseas,
with the majority of these including major manufacturing and recycling sites
in New Zealand and Asia. Additional facilities in the United States include
grinding media, LiteSteelTM Technologies and recycling operating activities.
www.onesteel.com
For further information, please contact:
United Kingdom
James Wyatt-Tilby, Media Relations
Tel: +44 (0)20 7968 8759
Leisha Wemyss, Investor Relations
Tel: +44 (0)20 7968 8607
South Africa
Pranill Ramchander, Media Relations
Tel: +27 (0)11 638 2592
Anna Mulholland, Investor Relations
Tel: +27 (0)11 373 6683
Kgapu Mphahlele, Investor Relations
Tel: +27 (0)11 373 6239
15 November 2010
Sponsor: UBS South Africa (Pty) Ltd
Date: 15/11/2010 09:00:06 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
