Anglo concludes $157.5m iron ore deal with Vale

ANGLO American said on Tuesday it had completed a deal incorporating the Serpentina iron ore deposit into its Minas Rio iron ore mine in Brazil.Duncan Wanblad, CEO of Anglo, hailed the “industrial logic” of the transaction, first announced in February. Serpentina, owned by Brazil’s Vale, neighbours Minas Rio. In terms of their agreement, Vale will pay $157.5m to Anglo for a 15% stake in Minas Rio.Vale also has an option over a further 15% stake in the mine.“Integration will generate material synergies through utilisation of Minas Rio’s infrastructure to accelerate the development of Serpentina,” said Wanblad who described Serpentina as an “outstanding resource”.The total orebody strike length of Serpentina was more the double that of Minas Rio with a higher iron ore grade than Minas-Rio’s premium grade ore as well as softer, friable ore, said Wanblad. These characteristics “should translate into lower unit costs and capital required for its extraction”, he said.Anglo could potentially double its production of iron ore pellet which is supplied to steelmakers to decarbonise their processes, said Anglo. The possibility of doing this was heightened by the access Anglo has to Vale’s rail infrastructure as a result of today’s deal.Commenting on Kumba Iron Ore, it’s listed subsidiary in South Africa, Anglo said it was “progressing” the ultra high dense media separation (UHDMS) project which is aimed at reducing waste at the firm’s Sishen and Kolomela mines.Wanblad’s comments come amid fresh speculation that with the expiry of a lock-up restriction, BHP will consider a second pass at Anglo American following its failed takeover attempt in May this year.Anglo has good momentum on its own restructuring plans, which Wanblad said would create better value than a BHP takeover. In addition to selling its metallurgical coal mines in Australia for up to $4bn (higher than analysts expected), the company has raised R17bn selling new shares in Anglo American Platinum, due to unbundled by mid-2025.The post Anglo concludes $157.5m iron ore deal with Vale appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com