Anglo American has approved a $300 million investment in its Minas-Rio iron ore complex in Brazil, signaling a strategic focus on expanding its iron ore operations. The capital expenditure will be allocated to the installation of recleaner flotation columns, aimed at boosting production throughput while maintaining high product quality.
According to a recent investor presentation, the implementation of these recleaners is projected to increase average annual production by approximately 2.8 million tons between 2028 and 2040. The investment will be phased over several years, with initial capital expenditure for Minas-Rio in 2024 remaining below $100 million.
This investment underscores Anglo American’s commitment to its Brazilian iron ore business, particularly following the company’s recent divestiture of its Brazilian nickel assets. A $500 million agreement with MMG Singapore Resources, a subsidiary of China’s MMG, will see the sale of the Barro Alto and Codemin ferronickel operations, along with the Jacaré and Morro Sem Boné greenfield projects.
The nickel transaction includes an upfront payment of $350 million, a potential $100 million price-linked earnout, and an additional $50 million contingent on final investment decisions for the development projects. This strategic realignment positions Anglo American to concentrate on maximizing the potential of its Minas-Rio iron ore asset.
