4th Nov 2013 11:51
LONDON (Alliance News) - Anglo American PLC Monday said it has completed the sale of 100% of its Amapa iron ore operation in Brazil to Zamin Ferrous Limited.
The FTSE 100 metals and minerals mining giant said the deal was completed after it received an initial cash consideration of USD134 million for the site.
As announced on September 25, Zamin also will pay Anglo American a deferred consideration of up to a maximum of USD130 million, payable over a five-year period, subject to certain conditions.
Anglo American said it will use the proceeds to pay down some of its debt.
As part of the transaction, Anglo American will assume responsibility for the risks and rewards of an ongoing insurance claim in relation to the Santana Port incident in March, in which the collapse and sinking of a floating port on the Amazon river led to the disappearance of six workers from the site.
The company also announced Monday that it has appointed Jim Rutherford, an investment banker with more than 25 years of experience as a non-executive director, with immediate effect.
Anglo American shares were up 1.5% to 1,482.00 pence Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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