Singapore, 22 February — UK-South African mining firm Anglo American is set to increase its iron ore capacity at Minas Rio in Brazil by integrating the Serra da Serpentina iron ore resource, currently owned by Brazilian producer Vale. The deal, expected to be finalized by the fourth quarter of this year, will see Vale contributing the Serra da Serpentina operations and $157.5mn in cash to acquire a 15pc shareholding in the expanded Minas Rio. Anglo American will retain control, management, and operation of Minas Rio, including any future expansions. Serra da Serpentina boasts an estimated resource of 4.3bn t, while Minas Rio’s pellet feed ore production reached 24mn t in 2023, marking a 12pc increase from the previous year. Vale will receive its share of production from Minas Rio upon completion of the agreement, along with an option to purchase an additional 15pc stake in the enlarged operation for cash under certain conditions. Adjustments to the purchase price will be made between Anglo American and Vale based on the average benchmark iron ore price over a four-year period. Last year, the Argus 62pc cfr China index averaged $119.62/dmt, and the index currently stands at $131.86/dmt for the year so far. Similarly, the Argus 65pc cfr China index averaged $131.88/dmt in 2023, with the year-to-date average at $143.78/dmt. While steel margins may have weakened since December, iron ore prices continue to reflect global market trends.
Anglo American to Merge Serra da Serpentina with Minas Rio Operations in Brazil
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