15th May 2007 07:01
Anglo American PLC15 May 2007 News Release 15 May 2007 Anglo American agrees purchase of 49% interest in MMX Minas-Rio iron ore project for US$1.15 billion Anglo American plc ("Anglo American") is pleased to announce that the contractfor the transaction, announced on 23 April 2007 with MMX MineracaoMetalicos S.A. ("MMX"), has been signed in Rio de Janeiro, Brazil today.Following satisfaction of the closing conditions, Anglo American will acquirea 49% interest in MMX Minas-Rio for an economic value and effective price ofUS$1.15 billion. Cynthia Carroll, CEO of Anglo American plc said: "I am delighted that MMX andAnglo American will be driving forward this exciting iron ore project. We havegreat confidence in Eike Batista and his management team and look forward to along and rewarding partnership. Iron ore is core to Anglo American's futuregrowth strategy and MMX Minas-Rio, together with the planned Kumba expansions,will add significantly to the Group's iron ore production, resulting inconsolidated iron ore production in excess of 100 million tonnes per annum inthe next five years." This acquisition represents Anglo American's second major investment in Brazilin the last six months. In December 2006, the approval of the Barro Alto nickelproject was announced at an estimated capital cost of $1.2 billion. Barro Altowill produce an average of 36,000 tonnes of nickel per year over a minimum 26year mine life and will contribute significantly to a potential doubling of theGroup's nickel production to around 90,000 tonnes per annum by 2011. Cynthia Carroll continued: "Anglo American has been operating in Brazil for manyyears and these major new investments indicate our firm commitment to remaininga responsible and successful operator in the country for many years to come." For further information: Investor Inquiries Charles Gordon Tel: +44 207 968 8933 Anna Poulter Tel: + 44 207 968 2155 Media Inquiries Kate Aindow Tel: +44 207 968 8619 Anne Dunn Tel: +27 11 638 4730 Notes to Editors: Anglo American plc is one of the world's largest mining and natural resourcegroups. With its subsidiaries, joint ventures and associates, it is a globalleader in platinum group metals, gold and diamonds, with significant interestsin coal, base and ferrous metals, industrial minerals and paper and packaging.The group is geographically diverse, with operations in Africa, Europe, Southand North America, Australia and Asia. (www.angloamerican.co.uk) This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Anglo American