South32 Mulls Purchase of Anglo American Manganese Stake
February 18 2016 - 4:59AM
Dow Jones News
By Rhiannon Hoyle
SYDNEY-- South32 Ltd., the Australian-based miner spun out of
BHP Billiton Ltd. last year, said it is considering buying Anglo
American PLC out of two manganese ventures the pair jointly
own.
London-listed Anglo American, which is offloading a raft of
unwanted assets, has signaled its interest in exiting
manganese--mostly used in steel and aluminum production--as it
narrows its focus to diamonds, platinum and copper.
Anglo American owns 40% of the two ventures, Gemco in
Australia's Northern Territory and Samancor Holdings in South
Africa. South32, which owns the other 60%, operates both
businesses.
"As a [joint-venture] partner with a deep understanding of their
value, we would be a buyer if the price is right," South32 said on
Thursday in an emailed statement.
"We have a good relationship with our joint-venture partner and
they've communicated their intentions," the statement went on. A
spokeswoman was unable to comment further on discussions between
the two companies.
On Tuesday, Anglo American, seeking to shore up its balance
sheet as the commodity downturn deepens, said it plans to reduce
the number of mining operations it runs to 16 from 45.
A spokesman for Anglo American couldn't immediately be
reached.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
(END) Dow Jones Newswires
February 18, 2016 04:44 ET (09:44 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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