Anglo American announces assets sale to OneSteel

November 15, 2010 | 08:38

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Global mining group Anglo American said Sunday that it has agreed to sell divisions Moly-Cop and AltaSteel to Australian firm OneSteel for almost one billion US dollars.

"Anglo American plc announces that it has agreed to sell Moly-Cop and AltaSteel to OneSteel Limited for a total consideration of $932 million on a debt and cash free basis," it said in a statement.

"The business consists of the grinding media and steel products businesses of Anglo American located in North and South America, and includes the joint venture interests in the Donhad grinding media business in Australia and GenAlta Recycling Inc. in Canada," it added.

The sale, worth the equivalent of 681 mullion euros, is part of Anglo American's ongoing divestment policy to sell off non-core commodity assets.

Anglo had agreed earlier this year to sell its zinc units to British rival Vedanta for $1.338 billion.

"Following the divestment of our zinc portfolio in May 2010, the sale of Moly-Cop and AltaSteel represents further strategic progress as we continue to focus on our core commodity businesses and on the delivery of our major near term growth projects," said Anglo chief executive Cynthia Carroll on Sunday.

"I thank the Moly-Cop and AltaSteel management teams and employees for their support during this sale process and I wish them every success under the ownership of OneSteel."

Sydney-based OneSteel added that the deal would provide it with a "platform for future growth" in the industry.

Last year, Anglo-American axed a massive 23,400 jobs, including contractor positions -- and it fought off a hostile takeover bid by Swiss miner Xstrata.

AFP

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