#anglo american#Brazilian mining#CMOC#niobium mining#phos

Anglo American to sell Brazilian niobium and phosphates businesses

Anglo American has announced an agreement with China Molybdenum Co. Ltd (CMOC) to sell its niobium and phosphates businesses for a total cash considerat...

Lucy Dixon
|Apr 28|magazine4 min read

Anglo American has announced an agreement with China Molybdenum Co. Ltd (CMOC) to sell its niobium and phosphates businesses for a total cash consideration of $1.5 billion.

The wholly owned Brazilian businesses are located in the states of Goiás and São Paulo. 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 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 - it is expected to close in the second half of 2016.

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