Wrap Text
Agrees $1.5 billion sale of Niobium and Phosphates businesses
Anglo American plc
(Incorporated in England and Wales)
(Registration number: 3564138)
Registered office: 20 Carlton House Terrace, London, SW1Y 5AN
ISIN: GBOOB1XZS820
JSE Share Code: AGL
NSX Share Code: ANM
(“Anglo American”)
Anglo American agrees $1.5 billion sale of Niobium and Phosphates businesses
Anglo American plc (“Anglo American”) announces it has reached agreement with China
Molybdenum Co. Ltd (“CMOC”) to sell its Niobium and Phosphates businesses for a total cash
consideration of $1.5 billion (“the Transaction”). The total consideration will be payable to Anglo
American at closing, subject to certain closing and post-closing adjustments.
The wholly owned Niobium and Phosphates businesses are located in the states of Goiás and
São Paulo, in Brazil. The Phosphates business consists of a mine, beneficiation plant, two
chemical complexes and two further mineral deposits. The Niobium business consists of one
mine and three processing facilities, two non-operating mines, two further mineral deposits and
sales and marketing operations in the United Kingdom and Singapore. Together, the
businesses generated EBITDA of $146 million(See Note 1) in the year ended 31 December 2015.
Mark Cutifani, Chief Executive of Anglo American, said: “The sale of our Niobium and
Phosphates businesses is another positive step forward in the strategic reshaping of Anglo
American that we set out in February. The proceeds from this Transaction, together with the
ongoing productivity and cost improvements we are driving through the business, will enable us
to continue to reduce our net debt towards our targeted level of less than $10 billion at the end
of 2016. This Transaction confirms our commitment to creating the new Anglo American,
positioned to deliver robust profitability and cash flows through the price cycle.”
The Transaction is conditional upon customary People's Republic of China regulatory approvals,
and the approval of CMOC shareholders. Anglo American received binding commitments from
the two major CMOC shareholders holding 63 per cent. of CMOC shares to support the
Transaction. The Transaction is expected to close in the second half of 2016.
Anglo American intends to use the proceeds to reduce its level of debt.
Note: (1) EBITDA of $146 million is based on the EBTIDA definition provided in the Anglo American plc Annual
Report. Additionally, during 2015, $17 million of EBIT was capitalised in relation to the Boa Vista Fresh Rock (BVFR)
project.
Additional information:
The Phosphates business comprises the following assets and facilities:
- Chapadao mine
- Ouvidor beneficiation plant
- Catalão complex
- Cubatão complex
- Coqueiros and Morro Preto deposits
The Niobium business comprises the following assets and facilities:
- Boa Vista mine
- Boa Vista plant and metallurgical plant
- Boa Vista Fresh Rock plant
- Tailings plant
- Mina I and Mina II (non operating)
- Area Leste and Morro do Padre deposits
Production Q1 2016 FY 2015
Niobium (t) 1,400 6,300
Phosphates (t)
Concentrate 333,100 1,341,400
Phosphoric acid 79,100 265,100
Fertiliser 274,900 1,110,800
DCP 31,500 147,300
Financials
($m, year ended 31 December 2015)
Revenue $544
EBITDA $146
Profit Before Tax $69
Gross Assets $1,279
For further information, please contact:
Media Investors
UK UK
James Wyatt-Tilby Paul Galloway
james.wyatt-tilby@angloamerican.com paul.galloway@angloamerican.com
Tel: +44 (0)20 7968 8759 Tel: +44 (0)20 7968 8718
Marcelo Esquivel Ed Kite
marcelo.esquivel@angloamerican.com edward.kite@angloamerican.com
Tel: +44 (0)20 7968 8891 Tel: +44 (0)20 7968 2178
South Africa Sheena Jethwa
Pranill Ramchander sheena.jethwa@angloamerican.com
pranill.ramchander@angloamerican.com Tel: +44 (0)20 7968 8680
Tel: +27 (0)11 638 2592
28 April 2016
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Notes to editors:
China Molybdenum Co., Ltd. (CMOC) is primarily engaged in the mining, processing,
smelting and deep processing of tungsten and molybdenum, the exports of molybdenum,
tungsten and chemical products, the mining and processing of copper as well as the mining,
processing, production and sales of gold and silver. CMOC operates the fourth largest copper
producer in Australia, Northparkes, which is located 27 kilometres north of the township of
Parkes in Central West NSW. Northparkes is 80% owned by CMOC and is managed and
operated on behalf of the Northparkes Mines Joint Venture. In addition CMOC operates the
wholly-owned Sandaozhuang molybdenum-tungsten mine located in Luoyang China. CMOC is
dual-listed on the Hong Kong Stock Exchange (HK3993) and the Shanghai Stock Exchange
(SH603993).
Anglo American is a globally diversified mining business. Our portfolio of world-class
competitive mining operations and undeveloped resources provides the raw materials to meet
the growing consumer-driven demands of the world’s developed and maturing economies. Our
people are at the heart of our business. It is our people who use the latest technologies to find
new resources, plan and build our mines and who mine, process and move and market our
products – from diamonds (through De Beers) to platinum and other precious metals and
copper – to our customers around the world.
As a responsible miner, we are the custodians of those precious resources. We work together
with our key partners and stakeholders to unlock the long-term value that those resources
represent for our shareholders, but also for the communities and countries in which we operate
– creating sustainable value and making a real difference.
www.angloamerican.com
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