[miningmx.com] – GLENCORE is speculated to be one of four bidders for
Anglo American’s Amapa iron ore mine, judged non-core by the UK-listed mining
house, according to a report by Reuters.
Glencore is reportedly joined by Russian steel producer Severstal, a privately-owned
mining group Zamin and Australia’s Centaurus in bidding for the mine that Anglo first
bought in 2008 as part of its $5.5bn Minas Rio acquisition.
Glencore, Severstal and Zamin declined to comment, Reuters said. The mine is
situated in northern Brazil.
Anglo, which owns 70% of Amapa, wants to focus on Minas Rio, an acquisition that
has drawn the criticism from Anglo’s shareholders following cost overruns and
regulatory-linked delays in commissioning.
An internal valuation put Amapa’s value at 1.5bn, although the price of iron ore has
fallen significantly since the valuation was done, therefore the stake in Amapa would
be worth less than $1.5bn, Reuters said.
