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South Africa : Anglo American to sell down majority stake in Kumba Iron Ore or demerge asset
Publish Date : 18-Feb-2016
In a process that will take until 2017, ANGLO American has decided to either sell down its controlling stake in Kumba Iron Ore or demerge the asset.
However, the company will keep its Minas Rio iron ore mine in Brazil in the stable for the next 3 years.
The company said it would slash its asset base 16 from a target of between 20 and 25 set last December. At that stage it owned 55 assets.
Anglo American is narrowing its focus to only diamonds in De Beers, platinum in Anglo American platinum an 80% owned subsidiary and copper. The company is exiting iron ore, coal, nickel and several other commodity classes.
Anglo chief financial officer Rene Medori said, "We are looking at either selling down our equity position in Kumba as well as a potential demerger of Kumba. Because of the time it will take to complete this transaction in SA, we will not expect to complete this transaction until some time in 2017."
Anglo CEO Mark Cutifani, added, "We have an open-tender process, making sure we consider commercial aspects, empowerment aspects, social aspects and delivering on our commitments to our customers and to the government. We have a short list and each of those groups is fully empowered. We are in conversation with the government, Eskom and the players involved to make sure we understand whats required in finalising a transaction that meets the needs of all parties. I expect those conversations to go through the next couple of months and then well see where we land and work out what the final bids should look like and how that will fit with each of our key stakeholders."
