Anglo American to Sell Brazilian Iron Ore Operation for $136 Million
September 25 2013 - 2:52AM
Dow Jones News
LONDON--Diversified miner Anglo American PLC (AAL.LN) said
Wednesday that it will sell 100% of its Amapa iron ore operation in
Brazil to iron ore specialist Zamin Ferrous for $136 million.
In January Anglo American agreed to sell its 70% stake to Zamin,
but raised its holding in Amapa to 100% following an accident that
resulted in six deaths and entered into new negotiations with Zamin
and Cliffs Natural Resources Inc (CLF), which owned 30% of
Amapa.
The agreement to sell Amapa for $136 million is subject to
certain adjustments at completion and the repayment of any
intercompany balances.
Zamin will also pay Anglo American up to a maximum of $130
million in total, payable over a five year period which will be
calculated on the basis of the market price for iron ore.
Anglo American shares closed Tuesday at 1,546 pence valuing the
company at GBP21.55 billion.
Write to Rory Gallivan at rory.gallivan@wsj.com; Twitter:
@RoryGallivan
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