Anglo American Ships First Iron Ore From Minas-Rio in Brazil

Anglo American Plc delivered the first iron ore by ship from its Minas-Rio project in Brazil.

The cargo of more than 80,000 metric tons of the steel-making mineral was loaded at Acu in Rio de Janeiro state and is en route to customers in China, London-based Anglo American said today in a statement. The project will expand to its capacity of 26.5 million tons a year over the next 18 months to 20 months, Paulo Castellari, chief executive officer of Anglo’s iron-ore unit in Brazil, said in the statement.

“We believe that the outlook for our particular premium product remains attractive, despite the current weakness in the iron-ore price,” Anglo American CEO Mark Cutifani said in the statement.

Prices have fallen by more than half since peaking in 2011, entering a bear market as producers including BHP Billiton Ltd. expand supplies. Anglo raised capital expenditure for Minas-Rio to $8.8 billion after an original estimate of $2.6 billion and wrote down $4 billion of the asset’s value in 2013. It fell 0.9 percent to 1,296.50 pence by the London close.

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