Anglo American to divest minority interest in Palabora Mining Company
Friday, 09 September 2011 12:41
Anglo American announces that it will participate in the sale process initiated by Rio Tinto to dispose of both companies’ interests in Palabora Mining Company Limited.
Anglo American currently holds a 16.8% effective interest in Palabora. Rio Tinto holds an effective 57.7% in Palabora.
Palabora’s principal asset is a copper mine in South Africa which also produces vermiculite and magnetite and, while studies are under way for a potential extension to the copper mine’s life from 2016 to 2030, the operation is no longer of a sufficient scale to suit Anglo American’s investment strategy. Palabora owns a magnetite stockpile and the future value creation at Palabora is likely to involve the on-site processing and beneficiation of magnetite, an opportunity that Anglo American believes will be best developed under new ownership.
