| Wed 29 Dec 2010, 15:15 | | AGL - Anglo American plc - Anglo American secures long-term port tariff for |
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AGL
ANAAL
AGL - Anglo American plc - Anglo American secures long-term port tariff for
Minas-Rio iron ore project
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 secures long-term port tariff for Minas-Rio iron ore project
Anglo American plc announces further progress in relation to the Minas-Rio iron
ore project in Brazil, including certainty around its long-term port tariff
arrangements and clarity in relation to the port`s capital funding.
Cynthia Carroll, Chief Executive of Anglo American, said: "We have now secured
an extremely competitive cost position for our world class Minas-Rio iron ore
project in Brazil, with an FOB cost well inside the first quartile. The
optionality for port expansion to more than 90 million tonnes per year and the
priority rights we have for our iron ore shipments at the port make this a key
strategic asset for Anglo American in Brazil."
Long-term port tariff secured
Anglo American has agreed a fixed 25-year iron ore port tariff agreement with
its port partner, LLX SA, in relation to the LLX Minas-Rio ("LLX MR") owned iron
ore port facility at Acu ("the port") that forms part of the integrated iron ore
system of the Minas-Rio project. Anglo American owns a 49% shareholding in LLX
MR.
The first phase of the Minas-Rio project will produce 26.5 million tonnes per
year ("mtpa") of iron ore. In respect of this tonnage, Anglo American will pay a
net port tariff of approximately US$5.15 per tonne (in 2013 terms) after taking
into account Anglo American`s shareholding in LLX MR (US$7.10 per tonne gross).
The gross tariff will reduce from US$7.10 per tonne to US$4.25 per tonne for
volumes in excess of 26.5 mtpa, provided there is no need to expand the port to
accommodate that excess volume.
Combined with the expected low operating costs of the mine, beneficiation plant
and pipeline, Anglo American expects a highly competitive, first quartile FOB
cost position for Minas-Rio.
Anglo American has also secured agreement in relation to the long-term tariff
arrangement for all its iron ore volumes beyond the first phase of the Minas-Rio
project. The level of the expansion tariff will be dependent upon the capital
cost to expand the port to accommodate those additional volumes and that capital
cost will be determined in due course.
Port capital expenditure
As part of the agreement to secure the long-term tariff arrangements, Anglo
American has agreed to fund a greater share of the development cost of the first
phase of the port. This agreement is expected to result in additional capital
expenditure attributable to Anglo American of approximately US$525 million in
relation to the port; Anglo American`s total share of the port development cost
will be approximately US$1.2 billion.
For further information, please contact:
United Kingdom
Caroline Metcalfe, Investor Relations
Tel: +44 (0)7590 780 954
South Africa
Anna Mulholland, Investor Relations
Tel: +44 (0)7789 746 126
Brunswick
Jonathan Glass
Tel: +44 (0)7974 982 486
Daniel Thole
Tel: +44 (0)7834 502 518
Notes to editors:
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
29 December 2010
Sponsor: UBS South Africa Pty Ltd
Date: 29/12/2010 15:15:51 Produced by the JSE SENS Department.
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