Anglo American to invest US$300mn in Brazilian Minas-Rio project

UK-based miner Anglo American approved a plan to invest US$300mn in its Minas-Rio iron ore complex in Brazil.

The investment will be allocated to recleaner flotation columns.

“Capex for recleaner flotation columns at Minas-Rio is expected to enable higher throughput while maintaining product quality. The average impact on production from the implementation of the recleaners between 2028 and 2040 is estimated to be ~2.8 Mtpa [million tons per year],” the company stated in a recent investor presentation.

The company indicated that the investments will be made gradually over the coming years, as the projected capex for the Minas-Rio facility this year is less than US$100mn.

Anglo American is increasing its focus on iron ore operations in Brazil, following its recent announcement of a deal with MMG Singapore Resources, a unit of China's MMG, for the sale of its local nickel operations for US$500mn.

The transaction includes the Barro Alto and Codemin ferronickel operations, along with the Jacaré and Morro Sem Boné greenfield projects.

Under the agreement, MMG Singapore will pay US$350mn upfront, up to US$100mn in a price-linked earnout, and an additional US$50mn contingent on the final investment decision for the development projects.