Wrap Text
Anglo American agrees revised terms for sale of Amapá to Zamin
Anglo American plc
Incorporated in the United Kingdom
(Registration number: 3564138)
Short name: Anglo
Share code: AGL
ISIN number: GB00B1XZS820
(the "Company")
25 September 2013
Anglo American agrees revised terms for sale of Amapá to Zamin
On 4 January 2013 Anglo American plc ("Anglo American") announced the sale of its 70%
interest in the Amapá iron ore operation in Brazil ("Amapá") to Zamin Ferrous Ltd. ("Zamin").
On 28 March 2013, prior to the completion of that transaction, a major geological event
occurred at the Santana port facility which resulted in the destruction of the port shiploader
infrastructure and sampling tower and the tragic loss of six lives. In light of these
circumstances, Anglo American entered into further discussions with its partner Cliffs Natural
Resources ("Cliffs") and Zamin. Anglo American subsequently entered into an agreement with
Cliffs to acquire its 30% interest in Amapá and has now agreed to amend the sale agreement
with Zamin, including to reflect Anglo American’s disposal of a 100% interest in Amapá to
Zamin.
Anglo American has agreed to sell 100% of Amapá to Zamin for an initial total consideration of
approximately $136 million, subject to certain adjustments at completion plus the repayment of
any intercompany balances. In addition, Zamin will pay Anglo American conditional deferred
consideration of up to a maximum of $130 million in total, payable over a five year period and
calculated on the basis of the market price for iron ore. Anglo American will use the proceeds to
pay down debt.
As part of the transaction, Anglo American will assume responsibility for, and the risks and
rewards of, the insurance claim in relation to the Santana port incident by acquiring the claim at
full claim value. After the tragic incident at the Santana port, the successful completion of this
transaction will allow a more certain future for all the stakeholders of Amapá and for Anglo
American to deliver on its strategic objectives.
The transaction is expected to close by the end of the year and is subject to Amapá state
regulatory approval.
Sponsor: UBS South Africa (Pty) Ltd
For further information, please contact:
Media Investors
UK UK
James Wyatt-Tilby Leng Lau
Tel: +44 (0)20 7968 8759 Tel: +44 (0)20 7968 8540
Emily Blyth Caroline Crampton
Tel: +44 (0)20 7968 8481 Tel: +44 (0)20 7968 2192
South Africa Sarah McNally
Pranill Ramchander Tel: +44 (0)20 7968 8747
Tel: +27 (0)11 638 2592
Notes to editors:
Anglo American is one of the world’s largest mining companies, is headquartered in the UK
and listed on the London and Johannesburg stock exchanges. Our portfolio of mining
businesses meets our customers’ changing needs and spans bulk commodities – iron ore and
manganese, metallurgical coal and thermal coal; base metals and minerals – copper, nickel,
niobium and phosphates; and precious metals and minerals – in which we are a global leader
in both platinum and diamonds. At Anglo American, we are committed to working together with
our stakeholders – our investors, our partners and our employees – to create sustainable value
that makes a real difference, while upholding the highest standards of safety and responsibility
across all our businesses and geographies. The company’s mining operations, pipeline of
growth projects and exploration activities span southern Africa, South America, Australia, North
America, Asia and Europe.
www.angloamerican.com
Zamin Ferrous is a private international mining group that has been operating in Brazil since
2005 and owns three significant assets with a combined 1,500 Mt potential resource in Brazil
as well as the 2,500 Mt Valentines Project in Uruguay. Zamin owns the Zamapa iron ore
processing facility in Amapa state with a total of 200 employees. It also owns 50% of the Susa
iron project, which is located in the state of Rio Grande Norte and the Greystone project, a
large iron ore deposit in the south east of Bahia State. Shipments from Susa and Zamapa
began in 2011 and on-going exploration at Greystone has proven a 284 Mt resource, with a
potential resource of 700 Mt. Zamin sold its Bamin project in the State of Bahia to ENRC for
total compensation of $1 billion paid in 2008 and 2010.
Amapá is a supplier of seaborne iron ore based in the state of Amapá in northern Brazil. Until
the incident which destroyed the port infrastructure in March 2013, iron ore was exported
through the port of Santana. In relation to the port incident, Amapá will be making a claim under
its insurance policies which have a cap of R$360 million (approximately $170 million). Prior to
Anglo American's agreement to acquire Cliffs’ 30% interest in Amapá (which remains subject to
regulatory approval) Amapá was owned 70% by Anglo American and 30% by Cliffs. Amapá
reported a loss before tax in 2012 of $369 million, given the impairment of the assets taken by
Anglo American on the transfer of Amapá to assets held for sale in 2012. As at 30 June 2013,
Amapá had gross assets of $404 million. Amapá’s mining activities are led by Director of
Operations José Luiz Martins.
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