25th Sep 2013 11:04
LONDON (Alliance News) - Anglo American PLC Wednesday said it has agreed revised terms over the sale of its 70% owned Amapa iron-ore operation in Brazil.
The global mining and minerals producer said it entered into further discussions over the Amapa site with Zamin Ferrous Limited after a geological event caused the destruction of the Santana port facility at the site, leading to the deaths of six employees in March.
Anglo America said it has agreed, along with the other 30% owner Cliffs Natural Resources, to sell 100% of the Amapa site to Zamin for USD136 million.
In addition Zamin will pay Anglo American a deferred consideration of up to a maximum of USD130 million over a five-year period, calculated on the market price for iron ore, which Anglo American will use to pay down debt.
Another part of the deal means that Anglo American will assume responsibility for any insurance costs or rewards in relation to the Santana port incident.
The transaction is expected to close by the end of the year and is subject to Amapa state regulatory approval.
Anglo American shares were up 1.2% to 1,563.50 pence in early trading Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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