AAL Anglo American Plc

Brazilian mining mammoth, Vale SA (VALE, VALE5.BR) is the favorite to buy Anglo American's (AAUKY, AAL.LN) fertilizer assets in Brazil, the Valor newspaper reported Wednesday.

Anglo announced its aim to sell its fertilizer company Copebras, valued at $1.2 billion, on Oct. 23.

Vale was the first company to publicly express an interest in Copebras, when CEO Roger Agnelli told reporters in London of a possible bid on Nov. 3.

Vale said Wednesday it would not comment further on the company's reported interest in Copebras.

Vale is unlikely to be the sole bidder.

Vital Jorge Lopes, president of Fosfertil (FFTL3.BR), Brazil's largest fertilizer producer told Valor his company was also interested.

Fosfertil was unable to immediately confirm the level of its interest in Copebras.

Fosfertil is controlled by holding company Fertifos, whose main shareholders are America's Bunge and Mosaic (MOS), along with Norway's Yara.

Valor said local analysts believe Fertifos shareholders may also individually make bids for Copebras, but Vale is their favorite.

Copebras had a 2008 turnover of around $600 million and produces 1.3 million metric tons a year of phosphates from its mine at Catalao, Goias State in Brazil's rich central farming belt.

Copebras has $1 billion expansion plans to double output at the mine.

Copebras has processing plants at Catalao and also at Cubatao near the major port of Santos in Sao Paulo State.

Earlier this year Vale paid around $850 million for potassium mining assets in Argentina and Canada. Potassium is another key ingredient for fertilizers.

Agnelli has previously said Vale is interested in developing its potassium mining business to supply Brazilian agriculture's large and growing appetite for fertilizers.

-By John Kolodziejski, Dow Jones Newswires; 55-21-2586-6086; John.Kolodziejski@dowjones.com

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