Anglo American Replaces Brazil Iron Ore Head Weber After Delays, Overruns

Anglo American Plc (AAL), the mining company investing $14 billion in projects in Brazil, named Paulo Castellari as chief executive officer of its iron-ore unit in the country to replace Stephan Weber.

Castellari is commercial director at the Brazil operation, running strategy, business development, sales and marketing and the supply chain, London-based Anglo said in a statement today. Weber, who held the position for about two years, will explore other opportunities, Anglo said, without saying if he resigned.

Castellari will oversee construction of Anglo’s largest project, the Minas Rio iron-ore site, which has suffered delays and cost overruns since it was bought in 2008. The project will have initial annual capacity of 26.5 million metric tons and the company expects its first shipment in the second half of 2013.

Under Weber, “we have achieved significant progress with the Minas-Rio project and the operational turnaround of Amapa,” Anglo CEO Cynthia Carroll said in the statement.

Minas Rio includes a mine, processing plant and 326-mile (525-kilometer) pipeline to Acu Port in Rio de Janeiro state. The company is studying expanding the project to produce about 80 million tons a year, Weber said in Brasilia on Nov. 23.

Anglo faced delays in getting permits and project design changes that boosted the cost of developing Minas Rio from an estimated investment of $3.8 billion in February 2010. The company also pushed back the start date to 2013 from 2010.

Anglo fell 0.5 percent to 2,482.5 pence at the close in London. The stock declined about 26 percent during 2011.

Elsewhere in Brazil

In Brazil, Anglo also operates the $1.9 billion Barro Alto nickel project, which began production in March and expects to reach 41,000 tons of annual output in 2013 after attaining full capacity in the second half of next year. The miner also has phosphate and niobium businesses after reversing a decision to sell its Copebras SA and Mineracao Catalao units.

Castellari was trained in administration at the Getulio Vargas Foundation and strategic planning at the London Business School and has held several positions within Anglo since 1996.

He was appointed commercial director of the Brazilian iron- ore unit this year, according to Anglo’s website.

To contact the reporter on this story: Juan Pablo Spinetto in Rio de Janeiro at jspinetto@bloomberg.net

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net

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