Anglo American hikes investment in Brazil project
Global mining giant Anglo American said on Wednesday it was nearly doubling its investment in port infrastructure for its Minas-Rio iron ore project in Brazil to 1.2 billion dollars.
The agreement to increase its investment by 525 million dollars (398 million euros) to 1.2 billion dollars was made following the conclusion of an 25-year agreement on tariffs for shipments through the Acu port, in which it owns a 49 percent stake.
"We have now secured an extremely competitive cost position for our world class Minas-Rio iron ore project in Brazil," Anglo American CEO Cynthia Carroll was quoted as saying in a statement.
"The optionality for port expansion to more than 90 million tonnes per year and the priority rights we have for our iron ore shipments at the port make this a key strategic asset for Anglo American in Brazil."
The first phase of the Minas-Rio project, which is 100 percent Anglo American owned and located in southeastern Brazil, will produce 26.5 million tonnes per year of iron ore.
Iron ore is used to make steel, a metal helping to feed construction in emerging economic powers such as China and India.
Anglo American agreed to buy Minas-Rio along with another iron ore project, Amapa, from MMX Mineracao e Metalicos SA (MMX) of Brazil in March 2008 for 5.5 billion dollars.
© 2010 AFP