Codelco, Saudi Arabia eye joint copper investments
The collaboration could also extend to lithium, as Saudi Arabia seeks to import the battery metal from Chile for domestic processing.
Anglo American Plc’s top boss in Brazil expects to sell its nickel assets in the country in the first half of 2025 as part of a massive restructuring triggered by an unsolicited $49 billion takeover bid from rival BHP Group last year.
Barro Alto and Niquelandia mines, in the Brazilian Midwest, have attracted interest of bidders from “different nationalities and backgrounds,” said Ana Sanches, Anglo’s chief executive officer in Brazil, in an interview Wednesday. Negotiations are being held in London and Standard Chartered Plc is the company’s financial adviser, she added. Consultancy firm KPMG is also involved in the process.
“We already have a number of companies closer to the final stages of negotiation. We’re expecting a conclusion in the next few months,” Sanches said. The company has not said what it will do with the assets if the sale does not go through.
On a Nov. 26 report Berenberg equity research team estimated a net asset value of $331 million for the mines. “Getting a good price will be difficult, we think, given a weak nickel price,” the bank analysts wrote in a note.
Anglo plans to focus on copper while keeping iron ore and fertilizer assets in the portfolio. The company is exiting diamond, platinum, nickel and coal mining.
In Brazil the miner will keep investing in the giant Minas-Rio project. The mine churned out 24.5 million tons of iron ore in 2024, according to Sanches. Last year’s production makes up more than 90% of the mine’s current capacity. The expectation is to keep the same pace in 2025 despite battered prices, she said. Iron ore slumped by more than 25% in 2024 due to China’s economic slowdown and increased supplies from major miners.
Rival miner Vale SA acquired 15% of Minas-Rio in December. The mine will integrate Vale’s contiguous Serpentina project, with the Brazilian firm having an option to buy another 15% in the event of a future capacity expansion. Starting April 1, Vale will receive its proportional share of Minas-Rio’s production, an Anglo spokesperson said.
The new partners see the potential to double high-quality ore capacity, adding 25 million to 30 million tons per year. An investment decision is expected after feasibility studies, which should be completed within five years. Anglo has planned investments of $2 billion (12 billion reais) in Minas-Rio from 2024 through 2028.
Sanches said Minas-Rio has a “promising future” within Anglo’s more simplified portfolio focusing on commodities directly related to the energy transition. The company is betting on greater demand for the high-grade iron ore that customers need to make steel with fewer emissions.
Minas-Rio includes a mine in Minas Gerais state, a processing plant, a 328-mile (529-kilometer) slurry pipeline and a port in Rio de Janeiro state. Anglo acquired the project from fallen mogul Eike Batista and spent $14 billion to take it to production, far exceeding original budgets.
(By Mariana Durao)
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