Anglo American PLC AAL Update on Minas-Rio iron ore project

  Anglo American PLC (AAL) - Update on Minas-Rio iron ore project

RNS Number : 9363Q
Anglo American PLC
13 November 2012




                          
13 November 2012
Anglo American update on Minas-Rio iron ore project


Anglo American plc ("Anglo American") announces  an update in relation to  its 
26.5 mtpa Minas-Rio iron ore project in Brazil.



In its Half-Year Financial Report in July 2012, Anglo American reported  that, 
subject to resolving  the existing licensing  challenges facing the  Minas-Rio 
project by  the  end  of  2012  and  not  encountering  additional  unexpected 
interventions, first ore on ship was  anticipated to be delayed to the  second 
half of 2014.



Since July,  work has  continued to  resolve the  licensing challenges.  These 
included  three   injunctions  affecting   construction  activities   at   the 
beneficiation plant,  as well  as  land access  issues  affecting the  525  km 
pipeline route.



Two of  the three  injunctions were  satisfactorily removed  during  September 
2012, enabling construction of the primary crusher and conveyor system at  the 
mine site  and  pre-stripping work  to  resume. The  third  injunction,  which 
affects the  construction  of  the  electricity  transmission  line,  remains, 
despite the licence having been awarded in March 2012, and efforts to  resolve 
the issue continue  with the  regulatory and  governmental authorities.  Work 
also continues to complete the land access programme for the pipeline.



Construction progress  is on  schedule  in relation  to  the elements  of  the 
project programme that are unaffected by legal or land access constraints.



Anglo American is carrying out a detailed cost review to assess the impact  of 
the already announced delay and the  other disruptive challenges faced by  the 
project which include high cost inflation across the construction industry  in 
Brazil. The review includes  an independent external assessment  commissioned 
by the Board.



Anglo American  will  provide  further detailed  information  in  relation  to 
Minas-Rio when the cost review has been completed and the remaining challenges
affecting the  project timetable  have been  resolved. However,  the  current 
indications are that  capital expenditure for  the project is  unlikely to  be 
less than  the  $8.0 billion  upper  end of  the  current range  of  analysts' 
expectations.







For further information, please contact:



Media                     Investors
UK                        UK

James Wyatt-Tilby          Leng Lau

Tel: +44 (0)20 7968 8759   Tel: +44 (0)20 7968 8540

                           
Emily Blyth               Caroline Crampton

Tel: +44 (0)20 7968 8481   Tel: +44 (0)20 7968 2192


South Africa              Sarah McNally

Pranill Ramchander         Tel: +44 (0)20 7968 8747

Tel: +27 (0)11 638 2592





                              Notes to editors:

Anglo  American  is  one   of  the  world's   largest  mining  companies,   is 
headquartered in  the UK  and  listed on  the  London and  Johannesburg  stock 
exchanges.  Anglo  American's  portfolio  of  mining  businesses  spans   bulk 
commodities - iron  ore and  manganese, metallurgical coal  and thermal  coal; 
base metals - copper and nickel; and  precious metals and minerals - in  which 
it is  a global  leader in  both  platinum and  diamonds. Anglo  American  is 
committed to the highest standards of safety and responsibility across all its
businesses and  geographies and  to  making a  sustainable difference  in  the 
development of the  communities around  its operations.  The company's  mining 
operations, extensive pipeline of  growth projects and exploration  activities 
span southern  Africa,  South  America, Australia,  North  America,  Asia  and 
Europe.

www.angloamerican.com

















                     This information is provided by RNS
           The company news service from the London Stock Exchange

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