Anglo American said this morning it is to sell its stake in a Brazilian iron ore operation to fellow miner Zamin Ferrous.
The terms of the sale – of its 70 per cent interest in the Amapá deposit – are confidential.
“Anglo American has always maintained that it does not envisage holding its interest in Amapá over the long term and, in July 2012, reported that it had transferred responsibility for Amapá to its other mining and industrial business unit and stated that it was exploring the possibility of divesting its interest,” the global miner said this morning in a statement.
An internal valuation by Anglo American last year put the value of Amapá at $1.5bn (£933.98m).
The mine, which is 30 per cent owned by Cliffs Natural Resources, produced 4.8m tonnes of iron ore in 2011 and is expected to ramp up production in the coming years. Amapá has a resource of 271m tonnes, according to Zamin Ferrous.
The deal is subject to state regulatory approval, and is due to complete this year.