Anglo American to divest minority interest in Palabora Mining Company
05 September, 2011
Anglo American announces that it will participate in the sale process initiated by Rio Tinto to dispose of both companies’ interests in Palabora Mining Company Limited (“Palabora”). Anglo American currently holds a 16.8% effective interest in Palabora. Rio Tinto holds an effective 57.7% in Palabora.
Palabora’s principal asset is a copper mine in South Africa which also produces vermiculite and magnetite and, while studies are under way for a potential extension to the copper mine’s life from 2016 to 2030, the operation is no longer of a sufficient scale to suit Anglo American’s investment strategy. Palabora owns a magnetite stockpile and the future value creation at Palabora is likely to involve the on-site processing and beneficiation of magnetite, an opportunity that Anglo American believes will be best developed under new ownership.