HomeBase MetalsGlencore in line for Anglo's Amapa iron ore mine

Glencore in line for Anglo’s Amapa iron ore mine

Anglo American’s iron
ore assets are divided into
two operating units: Kumba
Iron Ore in South Africa
(seen here) and Iron Ore
London, England — 06 November 2012 – Leading global trader Glencore International is speculated to be one of four bidders for Anglo American’s Amapa iron ore mine, which has been judged a non-core asset by the UK-listed mining giant.

Miningmx reports that Glencore is joined by Russian steel producer Severstal, a privately-owned mining group Zamin and Australia’s Centaurus in bidding for the mine that Anglo first bought in 2008 as part of its US$5.5 billion Minas Rio acquisition.

Glencore, Severstal and Zamin declined to comment, according to Reuters. The mine is situated in northern Brazil.

Anglo, which owns 70% of Amapa, wants to focus on Minas Rio, an acquisition that has drawn the criticism from Anglo’s shareholders following cost overruns and regulatory-linked delays in commissioning.

An internal valuation put Amapa’s value at US$1.5 billion, although the price of iron ore has fallen significantly since the valuation was done, therefore the stake in Amapa would be worth less than US$1.5 billion, Reuters estimated.

Source: Miningmx. For more information, click here.