The deal is expected to close in the second half of 2016, subject to certain closing and post-closing adjustments.
The wholly owned niobium and phosphates businesses are located in the states of Goiás and, in Brazil.
The phosphates business, in Goiás, consists of a mine, beneficiation plant, two chemical complexes and two further mineral deposits.
The niobium business, in São Paulo, 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(1) in the year ended 31 December 2015.
“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,” says Anglo American chief executive Mark Cutifani.
“The proceeds from the 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,” he adds.
The Transaction is conditional upon customary People’s Republic of China regulatory approvals, and the approval of China Molybdenum shareholders.
Anglo American received binding commitments from the two major China Molybdenum shareholders, together holding 63%, to support the transaction.