HomeBase MetalsAnglo could develop mineral projects worth US$50 billion

Anglo could develop mineral projects worth US$50 billion

Anglo American
chief executive
Cynthia Carroll
Johannesburg, South Africa — MININGREVIEW.COM — 28 October 2010 – Mining giant Anglo American says it could develop long-term projects worth US$50 billion (R340 billion) across a wide range of minerals in several countries.

Company chief executive Cynthia Carroll told a discussion forum here that some of these projects were in South Africa, Australia, Chile and Peru. “We have one of the world’s greatest long-term project pipelines,” she said.

Carroll said fundamentals for the global mining industry were very strong, powered mainly by growth in China. Demand for metals, which had declined during the global economic crisis, had since rebounded and had also pushed prices up due to a gradual recovery in the economy.

She confirmed that a major nickel project in Brazil would start to produce in a few months’ time, while South Africa’s Kolomela iron ore project would also commence production of 9Mt of iron ore in 2012, mainly for export.

The miner also planned to raise output at the Los Bronces copper mine in Chile by 2012.

Carroll said the talk to nationalise foreign-owned mines in South Africa was a matter for the country to decide, but pointed out that mining companies needed a level playing field to be able to develop and grow their assets.

Carroll cautioned that South Africa should learn from countries like Zambia, where nationalisation of copper mines in the 1970s led to a near-collapse of the industry. “Nationalisation doesn’t simply work, it hinders progress,” she said.