31st Mar 2008 13:30
Anglo American PLC31 March 2008 News Release31 March 2008 Anglo American acquires control of the Minas-Rio and Amapa iron ore projects Anglo American plc ("Anglo American") is pleased to announce that, following itsannouncement dated 17 January 2008, it has signed an agreement with thecontrolling shareholder of MMX Mineracao e Metalicos S.A. ("MMX"), Mr EikeBatista, Chairman & CEO of MMX, and certain other MMX shareholders (together "the Selling Shareholders"), to acquire a 63.5% shareholding in a new company ("IronX") which will be demerged from MMX and will own MMX's current 51% interestin the Minas-Rio iron ore project and 70% interest in the Amapa iron ore system.Mr Eike Batista will be Chairman of IronX. Anglo American has committed, after completion of this transaction, to extend anoffer to the minority shareholders of IronX at the same price per share paid tothe Selling Shareholders, the successful completion of which would result inAnglo American owning 100% of the Minas-Rio project, 70% of the Amapa system and49% of LLX Minas-Rio, the owner of the Port of Acu. Anglo American acquired 49%of the Minas-Rio project as part of its original investment announced in April2007, which included 49% of LLX Minas-Rio. These two projects, together with theplanned Kumba expansions, will significantly increase Anglo American'sparticipation in the seaborne iron ore market to approximately 150Mtpa by 2017in line with Anglo American's strategic goal to become a significant player inthe iron ore industry. IronX's gross assets at 31 December 2007, on a proforma basis, were R$2.2billion (US$1.2 billion) with a proforma operating loss for the year of R$25million (US$13 million). Anglo American will pay US$5.5 billion in cash for 100% of the issued andoutstanding shares of IronX, or approximately US$361.12 per IronX share(assuming one IronX share for each current MMX share). A further announcement will be made in due course. For further information, please contact: United Kingdom James Wyatt-Tilby, Media RelationsTel: +44 (0)20 7968 8759 Anna Poulter, Investor RelationsTel: +44 (0)20 7968 2155 South Africa Pranill Ramchander, Media RelationsTel: +27 (0)11 638 2592 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 and diamonds, with significant interests incoal, base and ferrous metals, as well as an industrial minerals business and astake in AngloGold Ashanti. The Group is geographically diverse, with operationsin Africa, Europe, South and North America, Australia and Asia.(www.angloamerican.co.uk) MMX Mineracao e Metalicos S.A. consists of integrated mining, mineralprocessing, production and logistics operations for iron ore and intermediateproducts for the steel industry. Principal projects include, MMX Corumba System, MMX Amapa System, MMXMinas-Rio System and LLX Logistica. (www.mmx.com.br) The Minas-Rio iron ore project is located in the Minas Gerais state in Brazil.It will comprise a mine and beneficiation plant producing high-grade pelletfeed. The pellet feed will be transported through a slurry pipeline to the Portof Acu which is being constructed in Rio de Janeiro State, with the potentialfor further pipelines and rail access. The Amapa iron ore system is located in the Amapa state in Northern Brazil.Construction of the Amapa system was completed recently, with initial productionin December 2007 and with annual capacity of 6.5 million tons per annum of ironore. MMX currently owns 70% of the Amapa system and Cleveland Cliffs Inc. owns30%. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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