HomeIndustrial MineralsAnglo still plans to sell Scaw Metals

Anglo still plans to sell Scaw Metals

Scaw Metals “’ to be
sold by Anglo American
London, England — MININGREVIEW.COM — 31 August 2010 – Mining and resources giant Anglo American plc has confirmed that it is still planning to sell the South African operations of Scaw Metals as part of its international divestment programme.

“Scaw will be divested “’ meaning both the South African business of Scaw and the Moly-Cop and Alta Steel businesses of Scaw, which are outside South Africa “’ although not necessarily at the same time,” said Anglo American spokesperson Pranill Ramchander.

Ramchander’s confirmation followed weekend reports that Anglo American had put the US$1billion (R7.5 billion) international assets up for sale.

UK newspaper The Independent reported that advisers Goldman Sachs and UBS had set the deadline for first-round bids on the steel maker’s international operations for early next month.

Scaw’s main South African operations are not part of the sale for now, but its other assets in Canada and Australia are up for grabs.

The UK newspaper quoted a leading mining banker as saying the assets could attract six or seven financial sponsors, or private equity bidders, and could fetch around US$1billion (R7.5 billion).

The Anglo American decision to divest certain non-core assets has seen it announce the demerger of the Mondi Group and sell its shareholdings in AngloGold Ashanti, Highveld Steel and Vanadium, Namakwa Sands and Tongaat Hulett and Hulamin.

Most recently the group announced the sale of its zinc assets to Vedanta for US$1.3billion (R9.75 billion).