7th Dec 2006 10:00
Anglo American PLC07 December 2006 News Release 7 December 2006 Anglo American approves $1.2 billion Barro Alto nickel project Anglo American announces the approval of the Barro Alto nickel project inBrazil, at an estimated capital cost of $1.2 billion. Barro Alto will produce an average of 36,000 tonnes of nickel per year in theform of ferronickel over a minimum 26 year mine life. Construction of the BarroAlto facilities is scheduled to begin in 2007 with production commencing in 2010and ramping up to full capacity during 2011. Barro Alto is located in the State of Goias in Brazil, about 170km north-west ofBrasilia, 240km north of Goiania and 150km from Anglo American's existingCodemin nickel operation. The Barro Alto nickel deposit was discovered in thelate 1960s and Anglo American completed its purchase of the deposit for $35million in 2002. A feasibility study was initiated in 2004 and completed inSeptember 2006. The deposit contains resources of 116.2 million tonnes, at an average grade of1.54% nickel, of which 62.4 million tonnes at an average grade of 1.66% nickelwill be mined by conventional open pit methods and treated over a 26 yearperiod. Part of the Barro Alto deposit is currently being mined to feed Anglo American'sCodemin plant in Niquelandia, Goias. Ore from Barro Alto is trucked toCodemin for processing in the existing facilities. This has successfullyextended the life of Codemin and permitted an increase in production from 6,000to 10,000 tonnes per annum, allowing Codemin to benefit further from the strongnickel price. Barro Alto ore will continue to be transported to Codeminthroughout the life of the newly approved Barro Alto project. The experiencegained in mining and treating Barro Alto ore at Codemin significantly reducesthe technical risk of the project. The construction of Barro Alto will include extending the existing open pit mineoperation and constructing a new ferronickel smelter and refinery. A long termpower supply has been secured. The operation will use tried and testedtechnology currently used by Anglo American at Codemin and Loma de Niquel inVenezuela. Tony Trahar, CEO of Anglo American said "The Barro Alto project is an excitinggreenfield project in a country where Anglo American has longstanding nickelproject management and operating experience. The production from Barro Alto willcontribute significantly to a potential doubling of the Group's nickelproduction to around 90,000 tonnes per annum by 2011. The outlook for the nickel market is positive with strong demand continuing andthis project provides an excellent opportunity to grow Anglo American's positionin this attractive market." For further information: Investor InquiriesNick von SchirndingTel: +44 207 968 8540 Charles GordonTel: +44 207 968 8933 Anne DunnTel: +27 11 638 4730 Media InquiriesKate AindowTel: +44 207 968 8619 Daniel NgwepeTel: +27 11 638 2267 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:
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