| Thu 10 Nov 2011, 9:00 | | AGL - Anglo American plc - Anglo American sells 24.5% interest in Chilean copper |
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AGL
ANAAL
AGL - Anglo American plc - Anglo American sells 24.5% interest in Chilean copper
assets to Mitsubishi Corporation for US$5.39 billion
Anglo American plc ("the Company")
Incorporated in the United Kingdom
(Registration number: 3564138)
Short name: Anglo
Share code: AGL
ISIN number: GB00B1XZS820
Anglo American sells 24.5% interest in Chilean copper assets to Mitsubishi
Corporation for US$5.39 billion
Anglo American plc ("Anglo American") announces the completion of its sale of a
24.5% interest in Anglo American Sur SA ("AAS"), comprising certain of Anglo
American`s copper assets in Chile, to Mitsubishi Corporation ("Mitsubishi") for
US$5.39 billion.
Anglo American`s transaction with Mitsubishi has enabled Anglo American to
realise an attractive valuation for a minority stake in AAS, valuing 100% of AAS
at US$22 billion. AAS includes the Los Bronces and El Soldado copper mines and
the Chagres copper smelter. The US$5.39 billion sale price has been paid in the
form of a promissory note delivered by Mitsubishi, which is due on 10 November
2011. The transaction is unconditional and was completed immediately following
agreement of the terms of the transaction.
Anglo American has regularly reviewed its available alternatives and, following
a thorough assessment, and in the interests of its shareholders, it entered into
a process to explore the potential value of the AAS assets through the
evaluation of a sale of a minority stake in AAS. Following this transaction,
Anglo American holds a 75.5% interest in AAS.
The transaction is fully compliant with the provisions of the option agreement
between Anglo American, certain of its affiliates and Codelco, which expressly
contemplates the eventuality of Anglo American disposing of its AAS shares at
any time prior to the date on which the option may be exercised and therefore no
longer holding 100% of the shares in AAS. In such an eventuality, the percentage
of shares in AAS over which Codelco may exercise its option is reduced by the
percentage of shares in AAS not held by Anglo American at the time of exercise.
The option is exercisable only during the month of January every three years
until January 2027.
Cynthia Carroll, Chief Executive of Anglo American, said: "We are delighted to
welcome Mitsubishi as a 24.5% minority investor in AAS. Mitsubishi brings both
its global reputation as an industrial powerhouse and extensive experience as an
existing investor in Chile. The terms of the transaction completed with
Mitsubishi highlight the inherent value of AAS as a world class, tier one copper
business with extensive reserves and resources and significant further growth
options from its exploration discoveries, valuing 100% of AAS at US$22 billion.
Mrs Carroll added: "Anglo American has a substantial portfolio of high quality
mining businesses in Chile, having invested US$6.5 billion since 1980 and
employing more than 10,000 Chileans, while our future growth ambitions have the
potential to bring significant further investment and employment to Chile. Our
approach is to build long term partnerships with national and local governments
and to support local communities in countries in which we operate. We have been
among the first to offer assistance to Chilean communities and to government in
times of need, for instance following last year`s devastating earthquake when we
mobilised significant resources to work together to rebuild and equip a number
of schools in the area most affected."
Sir John Parker, Chairman of Anglo American, added: "The sale of an interest in
AAS demonstrates the Board`s commitment to delivering value for our
shareholders, in line with the contractual alternatives available to us in our
agreement with Codelco. Anglo American remains fully committed to its major
inward investment programme in its Chilean business and to continuing its
significant social and community investment programme in Chile."
Anglo American is one of Chile`s largest inward investors, with US$6.5 billion
of investment in the mining industry since 1980, and has substantial future
growth options in the country through a number of multi-billion dollar
brownfield and greenfield projects over the next decade. Anglo American employs
more than 10,000 Chileans directly, supports many thousands more indirectly, and
has paid US$4.5 billion in taxes in Chile in the last five years. A leader in
social responsibility, following the earthquake in Chile in 2010, Anglo American
donated US$10 million, expertise and equipment and worked with the government to
reconstruct and equip six schools, enabling 4,500 children and teachers to
resume classes just three and a half months after the earthquake. Anglo American
has also committed US$3 million to work in partnership with the Ministry of
Housing and City Planning, together with Un Techo para Chile, to help more than
4,500 families in shanty towns across the metropolitan area of Santiago.
Anglo American intends to use the proceeds of the transaction for general
corporate purposes.
Additional information:
Anglo American 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 bulk commodities - iron ore and
manganese, metallurgical coal and thermal coal; base metals - copper and nickel;
and precious metals and minerals - in which it is a global leader in both
platinum and diamonds. 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
Anglo American Sur SA, a subsidiary of Anglo American, holds a significant
portfolio of copper assets in Chile, including the large open pit Los Bronces
mine, the open pit El Soldado mine and the Chagres smelter. For the year ended
31 December 2010, AAS generated an EBITDA of US$1.3 billion, had net assets of
US$3.2 billion and gross assets of US$4.9 billion. The portfolio has extensive
JORC compliant proven and probable reserves of 2.4 billion tonnes plus
additional resources of 6.4 billion tonnes, together with excellent exploration
upside. There are a number of projects currently under evaluation that have
significant potential to enhance near term performance and deliver long term
growth. In addition, exploration activities point to further potential to expand
resources at existing operations. Operations, project development and the
exploration programme are led by a highly experienced Anglo American management
team, including John Mackenzie (CEO) and James Beams (CFO), with established
relationships with local partners and agencies, supported by leading technical
expertise, project development skills, and a global platform.
Mitsubishi Corporation is a global integrated business enterprise that develops
and operates across virtually every industry, including industrial finance,
energy, metals, machinery, chemicals, foods and environmental businesses.
Mitsubishi`s current activities are expanding far beyond its traditional trading
operations as its diverse business ranges from natural resources development to
investment in retail business, infrastructure, financial products and
manufacturing of industrial goods. With over 200 bases of operations in
approximately 80 countries worldwide and a network of over 500 group companies,
Mitsubishi Corporation employs a multinational workforce of nearly 60,000.
For further information, please contact:
Media Investors
UK UK
James Wyatt-Tilby Leng Lau
Tel: +44 (0)20 7968 8759 Tel: +44 (0)20 7968
8540
Emily Blyth Caroline Crampton (nee
Tel: +44 (0)20 7968 8481 Metcalfe)
Tel: +44 (0)20 7968
2192
South Africa Leisha Wemyss
Hulisani Rasivhaga Tel: +44 (0)20 7968
Tel: +27 (0)11 638 4401 8607
Chile
Marcelo Esquivel
Tel: +56 2 230 6584
10 November 2011
Sponsor: UBS South Africa (Pty) Ltd
Date: 10/11/2011 09:00:48 Produced by the JSE SENS Department.
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