MMX

RNS Number : 9916Z

Anglo American PLC

28 July 2008

 



News Release

28 July 2008

Anglo American and Eike Batista progress transaction in Brazil

Anglo American and Mr Eike Batista, the controlling shareholder of MMX Mineração e Metálicos S.A. ("MMX") and IronX Mineração S.A. ("IronX"), announce that they are progressing the proposed transaction through which Anglo American will acquire control of IronX, the company that controls the Minas-Rio iron ore project and the Amapá iron ore system in Brazil.

In respect of the ongoing investigation in Brazil, Mr Batista has offered a personal indemnity, with no additional obligation on MMX, to cover any potential losses that may be incurred by Anglo American as a result of the investigation.  Anglo American has accepted the terms of the indemnity and, subject to the satisfaction of final conditions under the transaction agreements, which the parties are diligently seeking to fulfil, the transaction will be completed by 5 August 2008.

Cynthia Carroll, Chief Executive of Anglo American, said: "I am delighted that we are in a position to move forward with this transaction to the benefit of all the projects' stakeholders.  The Amapá mine is already in production and the first phase of the Minas-Rio project is well under way. We are excited about developing these two projects further with the excellent team we have inherited from MMX."

Eike Batista, Chairman and CEO of MMX, said:" We will continue to support Anglo American in its efforts to develop these significant iron ore projects in Brazil.  Anglo American is already demonstrating its renowned expertise at developing projects of this scale and I look forward to working with Anglo to develop these projects to their full potential."

For further information, please contact:

United Kingdom

James Wyatt-Tilby, Media Relations

Tel: [phone]

Anna Poulter, Investor Relations

Tel: [phone]

South Africa

Pranill Ramchander, Media Relations

Tel: [phone]

Notes to Editors:

Anglo American has agreed to acquire a controlling shareholding in IronX, which holds a 51% interest in the Minas-Rio iron ore project and a 70% interest in the Amapá iron ore system, from Eike Batista and other selling shareholders for $3.5 billion. Following completion of this transaction, Anglo American has committed to extend the offer to the minority shareholders in IronX at the same price per share. Many of the conditions to complete the transaction have been fulfilled or waived. The successful completion of the offer to the minority shareholders will result in Anglo American owning 100% of the Minas-Rio project, 70% of the Amapá system and 49% of LLX Minas-Rio, the owner of the Port of Açu.

Anglo American plc is one of the world's largest mining and natural resource groups. With its subsidiaries, joint ventures and associates, it is a global leader in platinum group metals and diamonds, with significant interests in coal, base and ferrous metals, as well as an industrial minerals business. The Group is geographically diverse, with operations in Africa, Europe, South and North America, Australia and Asia. (www.angloamerican.co.uk)

 

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