Anglo American announced the sale of its 70% interest in the Amapá iron ore operation in Brazil to Zamin Ferrous Ltd. The terms of the transaction are confidential and the transaction is subject to state regulatory approval.
Anglo American has always maintained that it did not see itself holding its interest in Amapá over the long term and, in July 2012, reported it had transferred responsibility for Amapá to its other mining and industrial business unit and stated that it was exploring the possibility of divesting its interest. Anglo American has transformed the operational performance of Amapá since acquisition in 2008, increasing production from 1.2 million metric tons (mt) in 2008 to 4.8 million mt in 2011. The transaction is expected to complete in 2013.
Zamin Ferrous is a private international mining group that has been operating in Brazil since 2005 and owns three significant assets in Brazil, which represent 1.5 billion mt, as well as the 2.5-billion-mt Valentines project in Uruguay. Zamin owns the Zamapa iron ore processing facility in Amapa state with a total of 200 employees, which will produce 1.5 million mt of iron ore in 2013. 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-million-mt resource, with a potential resource of 700 million mt. Zamin sold its Bamin project in the State of Bahia to ENRC for total compensation of $1 billion paid in 2008 and 2010.
Zamin has completed a definitive feasibility study for its 18 million mt/y Valentines project in Uruguay with top international consultants SNC Lavalin and Ausenco Sandwell. It has submitted its environmental impact statement to the Uruguayan regulatory authorities and expects to receive its license to commence construction for the project in late 2013. Valentines is targeting production in early 2016.