Press Release Archive - 2012

In its Half-Year Financial Report in July 2012, Anglo American reported that, subject to resolving the existing licensing challenges facing the Minas-Rio project by the end of 2012 and not encountering additional unexpected interventions, first ore on ship was anticipated to be delayed to the second half of 2014.

Since July, work has continued to resolve the licensing challenges. These included three injunctions affecting construction activities at the beneficiation plant, as well as land access issues affecting the 525 km pipeline route.

Two of the three injunctions were satisfactorily removed during September 2012, enabling construction of the primary crusher and conveyor system at the mine site and pre-stripping work to resume. The third injunction, which affects the construction of the electricity transmission line, remains, despite the licence having been awarded in March 2012, and efforts to resolve the issue continue with the regulatory and governmental authorities. Work also continues to complete the land access programme for the pipeline.

Construction progress is on schedule in relation to the elements of the project programme that are unaffected by legal or land access constraints.

Anglo American is carrying out a detailed cost review to assess the impact of the already announced delay and the other disruptive challenges faced by the project which include high cost inflation across the construction industry in Brazil. The review includes an independent external assessment commissioned by the Board.

Anglo American will provide further detailed information in relation to Minas-Rio when the cost review has been completed and the remaining challenges affecting the project timetable have been resolved. However, the current indications are that capital expenditure for the project is unlikely to be less than the $8.0 billion upper end of the current range of analysts’ expectations.